Strategies which ZERA can adopt in crafting the liquefied petroleum gas (LPG) regulatory framework for service quality and sustainable growth in the LPG industry in Zimbabwe

Abstract

World over Liquefied Petroleum Gas (LPG) is fast becoming a dominant energy source over other traditional fuels such as charcoal, firewood, animal waste, among others. This is due to its favourable properties such as environmental friendliness, portability and burning efficiency. Zimbabwe also has experienced remarkable increase of LPG usage of more than 400% in the period 2012 to 2019. Like any other petroleum products, LPG is a highly flammable, explosive and therefore very dangerous. For this and many other reasons the distribution of LPG must occur under the watch of a clear and sound regulatory framework. The current LPG regulatory framework was crafted on the basis of limited knowledge in that it was crafted on the basis of other petroleum products and the South African regulation. The emergence of the LPG industry attracted a number of new players in pursuit of the economic and financial gains offered. Unfortunately, some of them taking advantage of the regulatory weaknesses to achieve their objective and in the process exposing the public, the environment and prejudicing many other parties. Such examples include the existence of illegal road side traders using dangerous decanting methods, wholesalers unfairly trading, the use of nonstandard material and irregular installations, among others. It is on this basis that this qualitative study was undertaken to identify these regulatory gaps and proffer recommendations to the regulator. Findings from the study confirmed existence of the above- mentioned regulatory oversights. There is marked violation of laid down regulation and in some instances, regulation has not been provided for in certain key aspects which include standard for customer installations, adequate training and education for all stockholders such as installers, refillers and customers. The thematic analysis study based on 15 unstructured interviews conducted confirm the need to revitalize the regulation in order to ensure sound growth of the LPG industry. Key findings include the need to have a structured way of looking at safety aspects starting from transportation until final consumption: The need to consolidate licensing and importation procedures. The need to introduce marketer owned cylinder management to assist with improved accountability, traceability and recertification. The need to establish service quality attributes that guide consumers and ensures a minimal acceptable service standard.