Gas cylinder refunds not stifling competition - Fair Competition Office

The ruling is only one part of an investigation on whether anyone can impose on the distributors that they can only sell the products of one supplier.

The investigation was prompted by a complaint lodged by the GRTU which is insisting that the distributors are licensed retailers who should be free to sell the products of both gas suppliers - Liquigas as well as Easygas, which is about to start importing its own gas cylinders.

Liquigas had professed itself against having the distributors selling its product along with those from Easygas.

In its ruling, the Fair Competition Office found that the procedure of refunding deposits on gas cylinders, adopted by Liquigas, is not intended to stifle competition. “Effectively, this procedure was not introduced or is being used to shackle competition in the market of door-to-door distribution of gas cylinders.”

The Office also found that the procedure for requesting those deposits has been in place since the 70s, when the Enemalta Corporation was responsible for the supply of cylinders.

The authority said that it had also established that, over the years, the cost of the deposit on every cylinder had changed. There was a time when this deposit was only 50ċ, equivalent to little over €1.16.

The office maintained that consumer have the right to request and be given a refund on the cylinders from Liquigas. “It is worth noting that when consumers do not present receipts proving that they have paid this deposit on gas cylinders,” the authority said, “Liquigas is paying a refund of €5 of its own initiative.”

In the mean time, the Office for Just Competition is continuing it investigations to determine the process of distribution in the market.