Cylinder exchange slowing down total liberalisation of gas market

Absence of system to exchange Liquigas cylinder for Easygas cylinder preventing consumers from having full choice.

29 December 2010, 12:00am
by Matthew Vella

1 min read

The Malta Resources Authority is still looking into how domestic users can exchange their Liquigas gas cylinders for cylinders provided by Easygas without having to pay up to €30 for this simple transaction.

According to standard practice, consumers opting for an Easygas gas cylinder and who return their Liquigas cylinder can only get a €25 refund on presenting the receipt for their cylinder. Those without a receipt would only be given €5, but they would still have to pay €25 for a new Easygas cylinder.

The situation is preventing Easygas to effectively operate in a truly liberalised market without this stumbling block. Easygas managing director Reuben Farrugia this morning was at the Office of Fair Competition asking the competition authority to look into the matter.

Liquigas took over Enemalta’s gas bottling division at Qajjenza, where previously Malta’s 31 gas distributors loaded their trucks.

Easygas, which imports its cylinders from Italy, was meant to start on Monday but is being held up until the MRA can find a way for consumers to exchange their Liquigas cylinders for Easygas ones.

The distributors can distribute cylinders from both suppliers. Easygas is reportedly selling gas at some 10c less for 10kg and 15kg cylinders, and 15c less for a 25kg cylinder.

But its expectations for consumers willing to trade in their ‘old’ cylinders for the grey Easygas cylinders have been dampened by the problems in exchanging the cylinders.

Di-ve.com reported that Liquigas has around 500,000 cylinders while Easygas has started off with around 40,000, making the former the dominant player in the market.

Easygas belongs to Alphonse Farrugia and Sons, until recently a wines and spirits importer and distributor, with Teknogas of Ragusa. It recently bought out the island’s sole bulk gas distributor LP Gas Bulk Distributors.

Matthew Vella, a freelance journalist at MaltaToday, was formerly executive editor at Malt...

Mark Fenech •

The problem is not the exchange of cylinders, but the distribution factor of LPG cylinders and the GRTU being the culprit. Liquigas has a right that its distributors cannot also distribute cylinders belonging to its competitor as the GRTU wants. Has anybody ever seen a Farsons distribution truck carrying General Soft Drinks products? Has anybody ever seen a Marsovin wine distribution truck carrying wines manufactured by Delicata, Monte Kristo, Camilleri etc? Has anybody ever seen a Poligas cryogenic gases distribution truck carrying cylinders belonging to Multigas? So how does the Office of Fair Trade and GRTU pretend that the current distribution contractors should carry the cylinders from 2 differenct manufacturers and in the future it is said that there may be 4 different manufacturers. The problem is with GRTU, which cannot accept that the market has been liberalised and its distribution should also be liberalised. Can assure you that if the distribution factor is also liberalised, customers would see much more benefits by way of reduction in prices. So liberalise this sector aswell if you want to see the full benefits. On the question of deposit, this is very difficult to solve, as in the past deposits were as low as 50maltese cents, LM5 and if I remember correctly currently it is LM8, so what depost are you going to refund. And suppose next week liquigas deciides to reduce its prices over those of Easygas, will we exchange the cylinders again. So the problem is one of distribution and nothing else. Liberalise this factor and all will be settled.

Lino Camilleri •

Hawn malta dejjem jikkumplikaw l-affarijiet. Dejjem jaraw kif se jisolhu lill konsumatur. Impossibli l-MRA mhix kapaci tasal ghal konkluzjoni semplici. Ic-cilindri ghandhom jinbiddlu wiehed ghal wiehed. Bhal ma konna naghmlu meta konna nixtru kaxxa luminata. Jekk ma tihx il vojt thallas tieghu u daqshekk. Mhux fair ghal min ghandu cilindru antik irid ihallas biex jibdlu ma wiehed gdid jekk ma jurix ircevuta. Tista tghidli meta xtrajna dawn ic cilindri aktar min 20 sena ilu kif ser insibu l-ircevuta? Kieku kellna inzommu kull ircevuta ghal dak kollu li nixtru, ibqa cert li lanqas wahda ma nsibu. Hija haga logika li kull cilindru li jinsab ghand il kunsumatur dan bilfors li hallas tieghu. Allura ghalfejn l-ircevuta bil-fors?

Keith Goodlip •

At only €0.10 less from the "competition", it's hardly worth the hassle of looking for refunds on the empty Liquigas cylinders. From monopoly to duopoly, big deal.