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Security deposit on LPG cylinders from December

9 Jun 2024 Security deposit on LPG cylinders from December By OUR CORRESPONDENT

Muscat – Ministry of Commerce, Industry and Investment Promotion has introduced regulatory changes to the liquefied petroleum gas (LPG) sector, aiming to improve safety standards and streamline the market for gas cylinders.

The new ministerial decision (No 185/2024) is set to reshape the LPG market in the sultanate by allowing the introduction of fibreglass cylinders and enforcing stricter control over cylinder distribution.

Under the new regulations, the market will see the introduction of new fibreglass cylinders, which must meet specific conditions and standards for safety. Additionally, all existing gas cylinders will be phased out within three years, to be replaced by company-branded cylinders that are clearly marked for easier identification and tracking.

The revised regulations include a structured security deposit system for new cylinder purchases, with the fees based on cylinder size, ensuring that customers are accountable for the cylinders they use. This deposit is refundable upon return of the cylinder for good.

For purchase of a new 12kg cylinder, customers will have to pay RO5 as security deposit, RO10 for 22kg and RO15 for 51kg cylinders. The deposit on fibreglass cylinders of 8kg will be RO15 and RO20 for 12kg.

The decision will come into force 180 days (December 2024) after its publication in the Official Gazette.

In addition to enhancing safety, the decision introduces flexibility for market participants, allowing them to choose the duration of their licences and mandating that all gas distribution stations meet stringent new standards for equipment and operations.

The ministry has established a robust framework to enforce these regulations, including significant penalties for non-compliance. Violation of the new rules can result in written warnings, administrative fines of up to RO1,000 and potential suspension or revocation of licences.

These sweeping reforms are expected to enhance the integrity of the LPG supply chain in Oman, from cylinder manufacturing and distribution to end-user compliance, thereby enhancing both consumer safety and industry efficiency.

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