LPG gas for sustainability Use of LPG (Liquefied Petroleum Gas) as a substitute to traditional cooking fuels – Role of the Regulator By Ben Gasore O ver the last five years, Rwandans have been adapting to the use of Liquefied Petroleum Gas (LPG), a sign of how fast, efficient and environmental friendly the gas cylinders are when it comes to some of its uses including cooking. Asides the six companies in the country that import and distribute them, namely; Kobil, SP, Merez, Sulfo Industry, Rwanda Oxygen and Hashi Energy, the Rwanda Utilities Regulatory Authority (RURA), in collaboration with other concerned Institutions, is there to ensure that people are offered good quality service provision of that cooking fuel at the affordable prices, therefore ensuring its sustainable usage in Rwanda. “We work hand in hand with other Government institutions such as Rwanda Bureau of Standards, Rwanda Developement Board, Ministry of Trade and Industry, the Ministry of Infra- structure to ensure the best conducive environment for both investors and clients in the Energy sector,” said Alfred Byigero, Head of Energy, Water and Sanitation. in order to enforce national standards as well as relevant regional and international standards,” he explained. Byigero said the Government is looking at progressively replacing the use of charcoal and fire- wood with the use of LPG for cooking and since Rwanda doesn’t permit fees stand at Rwf one million and the LPG business license which is granted to any operator involved in more than one of the mentioned LPG business operations. Byigero said that a combined license titled “LPG Business License” is given to operators involved in more than one LPG business. Regulating services downstream petroleum Byigero said that, LPG being a downstream petroleum product, RURA specifically deals with infrastructure regulation of LPG facilities, above-ground petroleum storage facilities and petrol filling stations. “Aspects of construction, operation and maintenance are catered for in the development of related regulations. Eng. Alfred D. Byigero, Head of Energy, Water and Sanitation manufacture its own LPG yet, they were recommending all LPG operators who are not yet li- censed to do so in the nearest future. “Consumers are also encouraged to purchase LPG from a licensed operator so as to Benefit from the good quality it offers.” The Rwanda Bureau of Standards is entrusted with quality compliance checks for petroleum products including LPG while the Regulator carries out inspections twice a year to check compliance with the adopted regulation. The recommendations are then shared with concerned operators as and when required to help them offer better services in line with their regulations, according to Byigero. As per the regulations’ provisions, there are seven types of licenses in the LPG business which include the; importation license, bulk storage license, LPG wholesale and retailing license respectively, bulk transportation license, LPG plant construction whose He also added that the VAT waiver by the Government on gases in 2010 has contributed to increased uptake of LPG with the 20Kg being the most sold cylinder. That 18% VAT removal has however been offset by the global increase of oil products and LPG price, exchange rate and other exogenous factors. Apart from the 20kg, the LPGs’ other sizes include: 3kg, 6kg, 12kg, 15 kg,30kg, 35kg, 38 and 50 Kg. The LPG presents huge efficiencies in cooking and release less carbon dioxide per unit of energy than that of coal or oil, thereby contributing to environment conservation with less emissions of Greenhouse gases (GHG) into the atmosphere. [email protected] LPG Gas for sustainability GAS Bringing unmatched services closer to customers By Susan Babijja For any business to prosper or succeed, its services and products must be brought closer to the consumers, the very reason SP Ltd, a locally owned company dealing in petroleum products has embarked on in a bid to meet its clientele needs. Operating with twenty one branches country wide, the company says spreading its wings has enabled easy access of its products not only in the capital Kigali but even upcountry. Etienne Kanyamahanga, the Deputy Managing Director of SP Ltd says that the company has strategically established itself in all the provinces with branches that easily attract clients. “Now we are putting in much effort to ensure that our clients embrace the Liquefied Petroleum Gas (LPG) . We believe the product will enable clients to save as well as effectively conserve environment,” Kanyamahanga says. The LPG product is among the vast products offered by the company including: automotive gas, oil gasoline unleaded, kerosene and paraffin, Engine Oils, Gear and differential oils, greases, hydraulic oils and brake fluids among others. These products are sold in different quantities meeting the consumer demands. They include oils which are sold in cartons parked in one and five litres. This product is also available in five, twenty and 200 litres. Other quantities are determined by the consumer demand. LPG product is largely being encouraged to ensure that petroleum companies engage the population in a collective move towards public commitment in afforestation and environmental protection According to a survey conducted by AGRICONSULT SPA, a consultancy firm last year; at least 90 per cent of all Rwandan households depend on woody biogas as a primary source of energy. The survey was commissioned by Rwanda Natural Resources Authority (RNRA) in collaboration with the Belgian Cooperation (BTC). The findings of the report pose a big danger on the country’s forest cover which the government and stakeholders are working on to increase. Therefore, SP Ltd says it is time for the Rwandan population to take on Liquefied Petroleum Gas to avoid the increasing the rate of deforestation. “In 2003, we started putting much effort in promoting the use of this gas (Liquefied Petroleum Gas). We actually started importing the product from Kenya and Tanzania and we have been the main supplier of the product in the country,” he says. Like any other product, SP brings in LPG in sizes of 3kg, 6 kg, 12kg, 15kg, 20kg and 38kg. The company employs over 50 well trained workers in its various operations. This has enabled the company to stage a stiff competition in local market against multinational companies. SP has managed to stand out among other petroleum companies due to its efficiency and quality services delivery. With its roots dating back in 1967 under different names, the company became SP Ltd in 2007. Over time, the company has earned a good reputation in the industry. Among other strategies further expected to promote the company, include the up-grading of fuel stations to expand or widen base and capacity to serve customers, which Kanyamahanga says that although the company has been successful, there is still need to further work on promoting or sensitising the population about the benefits of using LPG Gas. He says that this will significantly increase the customer base and contribute to the general objective of environmental protection. He urges that this should be a collective responsibility including the government and other development partners. He says that SP Ltd is committed to providing best services while upholding high standards of professionalism in the petroleum industry. LPG Gas for sustainability Supplying smart cooking devices to save the environment By Susan Babijja Hashi Energy Rwanda has continued to put much emphasis on the need to shift from the use of charcoal stoves to Liquefied Petroleum Gas as an effective measure that will encourage the local population in directly contributing towards environment conservation. Hashi Energy has developed a systematic approach that will enable individuals, companies, industries, hotels and restaurants among other parties to cheaply buy and own an LPG GAS cylinder. According to the company, hotels and other clients can lease the cylinders for free and only pay for the cost of the gas once a valid order is confirmed as per company’s terms and conditions. The company also offers free delivery services to its distributors and commercial clients. Delivery is done within one hour after an order is placed but the company is quick to add that this delivery time is also dependent on the distance to the client site. Based on the demand, Hashi Energy has LPG GAS packed in different sizes mainly: 6Kgs, 13Kgs, 35kg and 50kg. The company also offers flexible modes of payment depending on the agreement made with the client. Specifically for hotels, the company does inbuilt gas tanks which are refilled whenever they reach a certain agreed threshold to ensure the hotels do not run out of the commodity. This also saves the hotels the hustle of having to worry about bottled deliveries. In using LPG GAS, Hashi Energy is confident the population will be significantly reducing on the negative effects of using coal stoves as well as ensuring a clean environment for the general public. It is believed that users will have enough time to engage in other productive activities since little time is used in preparing a meal compared to using a charcoal stove. Company’s Vision To be the leader in Energy solutions for Africa Company’s Mission Exceeding customer expectations by providing Energy Solutions while caring for our stakeholders The company has also developed a very attractive commission structure and an effective advertising and promotion of the product. Hashi Energy has retail petrol stations in all major towns in Rwanda including Kigali. Hashi Energy recently launched an electronic fuel management system. The electronic card, which has both pre-pay and post-pay options, allows customers to swipe the cards at the company’s Point of Sales located in all its retail outlets. The electronic card also allows the client to monitor their fuel usage through an online statement which the client can access using a secret pass code issued to each card holder. Available in all major Supermarkets and distributor outlets countrywide www.hashienergy.comCustomer care: +250 78830 6023, +250 78830 6022 LPG Gas for sustainability By Susan Babijja O ne of the leading petroleum companies in Rwanda, MEREZ Petroleum Limited, started its operations in the country close to 20 years back. The company that is currently operating with ten Petro stations has its headquarters in the capital, Kigali. With focus on sales and marketing of a range of petroleum products for the retail and commercial markets, MEREZ Petroleum Company will be opening up more branches with the target of making fifteen stations by the end of next year, according to Eric Herbez Mutaganda, the Managing Director. MEREZ is currently operational in Nyamirambo, Muhima and Gikondo. It also has stations in districts including Butare, Ruhango, Musanze, Ruhengeri, Rubavu and Rwamagana. Another station will soon be opened in Nyagatare. MEREZ does not only lead in the country but remains a major player in the East African Petroleum market, with products ranging from fuel, liquified petroleum gas to lubricants, grease and kerosene. It employs more than 100 staff serving in various positions. Although the company has made its reputation through dealing in petroleum products, it has also diversified through bringing in new products including the high quality Liquified Petroleum Gas (LPG). This product has been highly recommended for cooking as one of the most efficient mechanisms through which nationals can contribute towards protecting the environment. “Among other services and products we offer, we need to sensitize the population about the need to use the Liquified Petroleum Gas; as we have also found out that there is a misconception about using this product yet it is one of the most effective, cheap and environmental friendly means for cooking,” says Mutaganda. He says the company has a target of reaching out to the community in ensuring many Rwandans are able to use LPG to substitute charcoal stoves, Promoting clean energy for a greener environment • To open more stations • Allows hire purchase • LPG Cheap and environmental friendly which will help in controlling deforestation and contribute towards achieving the target of having a 30 per cent forest cover of the entire country by 2020. MEREZ sell its LPG directly to corporate clients mainly those involved hotels and Restaurant businesses. Others targeted are schools and prisons among other companies, organizations and institutions. LPG is available at all the company’s stations. Trucks have been put in place to specifically transport LPG to the already big clientele. The company says that the LPG cylinders available on the market are of European standards. Marketing LPG is top on the agenda of Merez. The company has plans of taking details of the clients as a means to have a clear and systematic approach to follow customer challenges whenever they arise. In line with enabling Rwandans to use LPG, the company is also working on contacting employers to enable employees get the product on a hire-purchase basis. Mutaganda says that with the arrangement, employees will be allowed to pay in installments in a given a period of time. “LPG is one of the most efficient cooking energies for both households and Institutions. Using at least 5,000 tonnes of LPG annually will save up to 25,000 tonnes of fire wood. This is a big A Merez attendant displaying LPG at their Nyamirambo Gas Station. intervention that will save indiscriminate felling of trees that would have been cut for charcoal,” he says.
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