Gas cylinder distribution - GRTU says resources authority must regulate better

The Malta Chamber of SMEs (GRTU) has reached an agreement as representative of gas cylinder distributors with Liquigas, the main suppliers of liquid propane gas.

GRTU said redistribution of gas cylinders – suspended after Liquigas accused its new competitor Easygas of hoarding its gas cylinders that it collected to exchange them with the Easygas cylinders – had resumed from the Qajjenza depot.

The GRTU said it had met the Malta Resources Authority but no agreement had been reached on how to tackle a similar incident. “We have suggested some procedures how to go about a gas shortage. We believe the MRA is obliged to control these events.”

Liquigas claimed its Qajjenza depot was totally depleted when Easygas hoarded up to 6,000 of its cylinders.

Easygas responded by saying that Liquigas was not coping with market demand. “Liquigas claims it has put 56,000 new cylinders on the market since 2009 in addition to the hundreds of thousands of cylinders already in the possession of Maltese households… This goes to show that the 6,000 cylinders represent only a minute and insignificant percentage of the cylinder stock which regularly changes hands within the Maltese market.”

GRTU said the MRA had issued a decision asking both gas suppliers to declare the amount of gas cylinders belonging to their competitors they are holding. Easygas was selling its new cylinders and collecting Liquigas cylinders from consumers.

This means that Easygas has to return the Liquigas cylinders it collected by tomorrow Wednesday.

A spokesperson for Liquigas said today neither the MRA nor Easygas had returned any Liquigas cylinders. "These cylinders are Liquigas’s property and have been abusively hoarded by Easygas during the last four months. Liquigas wants to make the authorities aware that this is only a temporary solution. Unless the authorities stop Easygas from continuing with its abusive hoarding, the problem will never be resolved."

Yesterday, Liquigas received a shipment from abroad comprising of 15kg gas cylinders and 25kg gas cylinders "as an extra effort to alleviate the current situation".

Liquigas can import more and more cylinders, but as long as Easygas keeps taking Liquigas cylinders, nothing will be solved for the long term. Thanks to Easygas, every day that passes the situation is getting worse. The responsibilities for order and for the abolition of this abusive hoarding practice are squarely on the shoulders of the Authorities,” the company said.

GRTU said it is also trying to seek amendments to legal notices that will regulate “an equal and more civilised” distribution of gas cylinders in an efficient manner.

“We insist that gas distribution is essential in a country that has only two suppliers, and the MRA must see that this situation does not crop up again. The regulator is responsible to control what it regulates.”