The Competition Commission has published the preliminary findings and proposed recommendations of the liquefied petroleum gas (LPG) market inquiry for public comment.
Among the findings are the commission’s concern about structural impediments to competition, which could hinder the growth of the LPG industry, as well as “significant bottlenecks” in the regulatory environment, which would restrict the ability of potential competitors to enter and/or expand in the LPG industry.
The commission on Tuesday requested all stakeholders, including market participants, to provide further submissions in respect of the proposed recommendations by June 7.
“Submissions should focus on the actions which market participants consider might be taken, or recommended for implementation, for the purpose of remedying, mitigating or preventing the concerns identified,” said the commission, which also encouraged market participants to propose additional recommendations to remedy the concerns.
The the inquiry had been scheduled to start in June 2014 and conclude in October 2015. The conclusion was, however, delayed, to March this year, after the inquiry got to a late start owing to changes in the terms of reference.
The conclusion was then further delayed last month by another six months, when the commission notified stakeholders that it would need until September 30 to consider “emerging issues uncovered” in the inquiry to date, to allow for substantial engagement with all key stakeholders on the proposed remedies.
“The commission is committed to make this market more competitive and, hence, engagements on proposed remedies require adequate consultation with key stakeholders including other regulatory bodies,” said the Competition Commission at the time.
The market inquiry aims to understand and promote competition in the local LPG sector, examine whether the supply bottlenecks in the LPG sector may serve to create circumstances or incentives that serve to distort, prevent or lessen competition and analyse the current price regulatory framework and its impact on competition in the sector.