Liquigas accuses GRTU of ‘holding Malta hostage’

Liquigas has accused GRTU of "holding Malta hostage" with its "unacceptable monopolistic practice in gas distribution". Adding that it operates in a number of European countries, Liquigas said it finds the situation in Malta both "inexplicable and unsustainable" and looks forward to a speedy, and comprehensive solution.    

The gas bottling company said some 29 gas distributors have intensified their efforts in restraining Liquigas from selling its own products. It added that GRTU expects that it can impose on government, gas suppliers and consumers a situation where its member distributors have absolute control of gas distribution, irrespective of the fact that such practices are neither legal nor tenable under Maltese laws.

"Gas distributors, like everyone else, must face the rules of competition on the market and operate therein. They cannot dictate to the consumer or the supplier," Liquigas said. "If the market is unsatisfied with their service, it cannot be held hostage to their whims or practices but be able to seek better service."

Liquigas said GRTU is set to repeat difficulties experienced last year, in order to exploit their monopoly and restrict service to consumers.

"We have never obstructed gas distributors from distributing cylinders. To enable customers to exercise their right of choice, Liquigas has consistently and unconditionally supplied distributors with its gas cylinders in line with the Competition Office Directive of December 2010."

The company reiterated that it has been subject to an unfair and unjust situation for months, when other companies would not tolerate this for even a week.

"While the gas distributors have all the freedom of distributing cylinders of both Liquigas and its competitor, the same gas distributors want to restrain Liquigas from selling its own products. Clearly, this imposition is completely unacceptable," a Liquigas spokesman said.

"Such exclusivity goes directly against both the spirit and the law of the European Union which thrives on the principle of free and unfettered competition and consumer choice."

The company recalled that GRTU was at the forefront of Malta's effort to join the EU. "Now, whether GRTU likes it or not, joining the Union has also imposed an obligation to adhere to its rules and regulations.  As the EU does not allow monopolies or similar restrictions, Liquigas is perfectly and fully entitled to distribute its own products without any uncalled-for restrictions and impositions."

Liquigas reminded that the fundamental right of consumers to choose the service, on the one hand, and of the company to operate in a fair and unfettered market, on the other hand, are inalienable.

"Government and its authorities are duty bound to ensure fair competition, and simply cannot keep on dragging their feet. It is high time for domestic and trade consumers to have the right of full choice of service, without any further excuse or delay."