Liquigas said in a statement this evening that it “has a cylinder distribution licence covering the whole Maltese territory issued by the Malta Resources Authority (MRA) that was a pre-requisite for the €25 million investment by Liquigas in Malta.”

Liquigas added that “it includes including the building and operation of a new LPG facility in Benghisa which allowed for the closure and dismantling of the outdated Qajjenza plant. Liquigas will defend its legitimate right to retain this licence.”

“Through MRA’s announcement issued today on the proposed LPG market structure, the authorities are now reverting back to a distribution monopoly by ensuring territorial exclusivity for distributors. This goes against the ideal model for consumers, preferred by Liquigas, which includes various distribution streams, each competing to deliver the best service possible.” Liquigas said.

Liquigas stated that “the newly implemented direct distribution model operated by Liquigas, whereby customers phone Liquigas Call Centre on 2165 1661/5 (available 24/7), is already providing numerous benefits, including a delivery system that ensures all consumers are served with gas at a convenient time and at the normal and correct price.”

“MRA’s proposal is seeking to stop this efficient service for Maltese consumers. This service is especially helpful for the elderly and for those living in the peripheral ‘hard to reach’ areas. This new distribution model is running in parallel with the door-to-door distribution service operated by the other distributors.

“This Liquigas service competes with the established distribution system and has already proved effective in ensuring that existing distributors improve their service levels,” Liquigas said.

“As regards to today’s MRA announcement on the reform of the market structure, Liquigas Malta Ltd will be examining in detail its legal, commercial and social implications,” the company concluded.

The Malta Resources Authority said earlier today that “it has been informed that the Government intends to declare the sale of LPG in cylinders as a Service of General Economic Interest – SGEI.

“It is important that consumers have the right of choice of cylinders and to be offered cylinders from different operators through a distribution system known as multi-flag, irrespective of the locality where they live, at reasonable prices, transparently and without discrimination,” the MRA said.

MRA added that “at the same time, new operators are offered the possibility to use this distribution system. Thus, there will be a competitive market.”

A public consultation document on these proposals is being launched. Comments are being received until the 6 December 2013.

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