Gas distributors return to work on Christmas day

Gas distributors returned to work on Christmas day, selling gas to households and buisnesses, ending a three day strike.

The situation has been brought back to normal by 5pm after all localities were supplied with gas cylinders, while next monday all distributors will be also selling products from both competing companies, after the Office of Fair Comeptition ruled that Liquigas must ensure fair competition and allow other products to be sold by the distributors.

Liquigas said in a statement that it has “taken note” of the decision, however it was reserving its rights by law.

Meanwhile, GRTU boss Vince Farrugia said that he has instructed all gas distributors to do their utmost to get the situation back to normal as soon as possible

The complaint by GRTU was lodged with the office by Parliamentary Secretary for Consumer Protection, Chris Said who was asked to intervene.

In the complaint, Liquigas was accused of abusing of its dominant position in that it was refusing to supply LPG and gas (heating) cylinders unless the distributors respected a provision in the exclusive distribution agreement, entered into between the parties that distributors shall refrain from purchasing, distributing and selling cylinders or any other products not belonging to Enemalta Corporation, which preceded Liquigas.

GRTU director general Vince Farrugia insisted that such action constituted a violation of the Competition Act.

Richard Camilleri, on behalf of Liquigas, sent the office a written rebuttal to GRTU’s allegations and Liquigas insisted it was not going to supply distributors, who will be catering for the carriage of cylinders belonging to any other company.

In another statement, issued by the Office of the Parliamentary Secretary, it was explained that the Office of Fair Competition considered a number of issues including the dominance by Liquigas, and that distributors were, in this case, buyers and acting as a service to supply consumers with gas cylinders.

It concluded that considering the consumer harm that would continue, as a result of the actions taken by Liquigas to refrain from supplying distributors with gas cylinders, the company was infringing the Competition Act.

In conclusion, the OFC issued Liquigas with a ‘cease and desist order’ whereby, the company was ordered to “immediately desist from imposing any exclusive purchasing/distribution obligation, and with immediate effect and unconditionally, to supply distributors with gas cylinders to avoid further consumer harm.”