The government is poised to introduce a new system of importing liquefied petroleum gas (LPG) that aims to significantly reduce consumers' costs of cooking gas.

The Cabinet approved the implementation of an open tender system (OTS) for LPG imports, a move that is expected to lower the price of a 13-kilogramme cylinder by up to Sh881.

Currently, the importation of LPG is controlled by a few players, leading to higher prices. A recent government-backed report highlighted the potential for cost savings through competitive bidding.

By opening up the market to multiple bidders, the OTS is expected to drive down the cost of LPG at the source and, consequently, at the retail level.

"The Cabinet meeting also approved the procurement of liquefied petroleum gas, heavy fuel oil, and bitumen through a centrally coordinated bulk procurement system," a government statement revealed.

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The report by Kurrent Technologies Ltd and Channoil Consulting Ltd, commissioned by the energy regulator, indicated that the current system has contributed to the rising cost of LPG. This has led to a decline in gas usage and a shift towards alternative fuels like charcoal.

Under the proposed OTS, LPG would be imported through a competitive bidding process, allowing multiple companies to participate.

This would lead to more efficient procurement and lower prices. The report estimates that the wholesale price of LPG could decrease by up to 114 per cent, resulting in substantial savings for consumers.

The government's decision to adopt the OTS for LPG imports is a significant step towards making clean cooking fuel more affordable and accessible to Kenyan households.

By promoting competition and transparency, the new system is expected to benefit both consumers and the economy.