Saudi Arabia Introduces Self-Service Gas Sales, Involving Private Sector

Saudi Arabia Introduces Self-Service Gas Sales, Involving Private Sector

The Saudi Ministry of Energy announced that it has issued the first license in the Kingdom for selling liquefied petroleum gas (LPG-cooking gas) cylinders through vending machines.

Last May, the Saudi Cabinet approved amendments to the system governing the distribution of natural gas and LPG for residential and commercial purposes.

Vending machines for LPG cylinders will be available at gas stations and large retail markets. The machines will provide consumers with all LPG-related services around the clock, and these include purchasing new gas cylinders, replacing empty cylinders with new ones, and purchasing cylinder accessories such as regulators and others.

These machines are designed to be linked with smart phone applications, to serve consumers in a better and easier way. This is part of the ministry’s efforts to realize the goals of its dry gas and LPG distribution system for residential and commercial purposes.

According to the ministry, the move to license smart pick-up stations for gas cylinders comes as an important part of the ministry’s endeavors towards opening up competition and abolishing monopoly in the LPG sales sector. It also coincides with the ministry’s endeavor to encourage investment in LPG sales activities.

The ministry started receiving qualification requests from companies that wish to invest in