Government calls on gas distributors to stop their protests

The Resources Affairs Ministry called on the gas distributors to resume with their work and appealed for “goodwill”.

The Ministry was reacting to a two-day protest in which gas distributors failed to transport gas to consumers and blocked the gas bottling plant in Qajjenza, owned by Liquigas.

The distributors are protesting against a 2008 legal notice that opened up distribution to anyone with a permit to distribute. In a reaction on Monday, Liquigas confirmed that last week it started distributing cylinders directly with its own trucks in the Sliema district.

“Liquigas Malta has the right both to ensure that its clients are well served and to protect its commercial interests,” it said. 

But gas distributors are not ready to accept the legal notice, claiming it was in breach of an agreement signed between them and government in 1992. The agreement gave the distributors exclusivity in covering areas themselves.

Minister George Pullicino said government is against any action that could potentially undermine current negotiations. “Stakeholders should continue operating according to the current agreement,” the ministry said.

GRTU said that while Easygas reached an agreement that allows gas distributors to distribute its cylinders, no such agreement was reached with Liquigas. Despite this, Liquigas confirmed that it had loaded its trucks with both Liquigas and Easygas cylinders.

Government said that the legal notice was published following consultations and suggestions made during discussions. “The proposal was drafted following lengthy discussions and now the dominant operator can have a dedicated service while there would also be multi-flagged distribution.”

“The distribution would still be carried out by the current local distributors.”

The ministry added that government remains open to facilitate negotiations that would eventually lead for an agreement.It added that the current proposal safeguards the commercial interests of all interested parties.

Protesting against the blockade of its plant, Liquigas said it was unfair that gas distributors were taking their frustration out on it.

“The distributors have repeatedly stated that their issue is with government and therefore Liquigas believes that it is unfairly targeted as it has no issue with the distributors except that it is now being blocked from serving its clients,” it said in a statement.

“In fact, the distributors’ trucks are being loaded with Liquigas cylinders, notwithstanding these trucks are now also carrying its competitor’s cylinders.”