Botswana Energy Regulatory Authority (BERA) has taken a move to regulate the export of Liquefied Petroleum Gas cylinders (LPG) to curb local price increases. The Authority stated that no person is allowed to export liquefied petroleum gas (LPG) cylinders without acquiring prior authorisation from the Authority.
“Any person who wishes to export LPG cylinders must request for authorisation in writing from the Authority.” When LPG cylinders are exported, it means the local market experiences shortage of packaging equipment and therefore reducing access to LPG by the consumers.
This may create an illusion that there is LPG shortage and drive prices upwards unnecessarily. BERA stated that further to this uncontrolled export may lead to uncompetitive behaviours where companies may export their competitor’s cylinders in order that they take them out of business.
The Authority is mandated with regulating export of LPG under Section 37 (1) g of the BERA Act. LPG cylinders are used in packaging LPG and uncontrolled export of cylinders could lead to illegal export of LPG.
“Any person who wishes to export LPG cylinders must request for authorisation in writing from the Authority.” When LPG cylinders are exported, it means the local market experiences shortage of packaging equipment and therefore reducing access to LPG by the consumers.
This may create an illusion that there is LPG shortage and drive prices upwards unnecessarily. BERA stated that further to this uncontrolled export may lead to uncompetitive behaviours where companies may export their competitor’s cylinders in order that they take them out of business.
The Authority is mandated with regulating export of LPG under Section 37 (1) g of the BERA Act. LPG cylinders are used in packaging LPG and uncontrolled export of cylinders could lead to illegal export of LPG.
