Gas cylinders distribution halted briefly

The distribution of gas cylinders was halted briefly yesterday morning as distributors refused to do their rounds insisting on decent profit margins.

The service returned to normal after an agreement was reached between the Malta Chamber of Small and Medium Enterprise (GRTU) and Enemalta.

As a result of the new agreement, the commission which gas distributors get on every gas cylinder sold will increase by 4c3, covering increases in costs, GRTU director general Vince Farrugia told The Times. The agreement covers the period March 2004 to December 2005.

Enemalta confirmed that the gas distributors had stopped working for some time, adding that the situation "soon" returned to normal following talks between the corporation's management and the GRTU.

Mr Farrugia explained that in the morning the distributors refused to buy cylinders arguing they were not prepared to purchase them at a price which did not give them the right margin of profit. The GRTU had estimated that the increase in diesel prices, in maintenance and in salaries had led to a loss of about Lm1,440 a year for every distributor. Mr Farrugia said the increases led to the distributors forking out 5c on the cost of every gas cylinder.

He said the shortage of gas cylinders, following the withdrawal of a number of them by Enemalta - due to problems with safety standards - was making matters worse. As a result of this withdrawal, distributors were often getting half the load they used to get before, which was increasing their travel costs.

The problem of lack of cylinders is expected to be eased on January 7 when a new consignment arrives. The GRTU said the gas distributors would make an effort to cater for consumers' demands until this cylinder shortage was solved.