Update 2: Gas prices in line with MRA guidelines, GRTU

(Adds GRTU statement) Some gas distributors are selling Liquigas cylinders at a higher rate than that set by the company, Liquigas said in a statement. The Chamber of Small and Medium Enterprises, GRTU, however said that the increases were in line with...

(Adds GRTU statement)

Some gas distributors are selling Liquigas cylinders at a higher rate than that set by the company, Liquigas said in a statement.

The Chamber of Small and Medium Enterprises, GRTU, however said that the increases were in line with a mechanism established by the Malta Resources Authority.

The company said it has not increased its recommended selling price of gas and prices were still at the October 1 level.

“Liquigas is now aware that some distributors have increased the selling price of gas.

“Such price increases are coming directly from some distributors who decided on their own to increase their prices for consumers.

“Distributors are not authorised to modify Liquigas recommended selling prices without any instruction and/or approval.

“The company is gathering information and will soon inform the public of the areas where gas is still being sold at the prices recommended by Liquigas,” it said.

Liquigas’s current price list follows.

Product type

Price

 

Consumers Price including VAT as from 01/10/2011

LPG    Mix

Propane Gas

Loose Kg

€1.65

€1.50

Cylinder Kg 10

€13.80

€13.90

Cylinder Kg 12

€16.50

-

Cylinder Kg 15

€20.70

€20.20

Cylinder Kg 25

€30.00

€32.70

Liquigas later published the following list  saying the distributors of fixed points of sale venues and times on the list were sellinggas at retail prices as recommended by Liquigas.

PLACE

Mon

Tues

Wed

Thurs

Friday

Sat

 

Marsa  

13th December Str

near Dun Ġorġ Preca Chapel

 

1600-1800

 

 

 

1600-1800

0800-1100

 

Siġġiewi  

St Margaret Str

 

 

 

 

1600-1800

 

0800-1100

 

Gozo, San Lawrenz  

Carmel Formosa

Triq Wied Merill

 

0700-1900

0700-1900

0700-1900

0700-1900

0700-1900

0700-1900

 

Gozo, Xewkija  

1, Soil Street

 

 

 

 

 

 

0900-1200 

 

 

 

 

 

 

 

 















This schedule is effective until March 31.

GAS PRICES IN LINE WITH MRA GUIDELINES - GRTU

The prices gas distributors were selling cylinders at were in line with MRA guidelines, the GRTU said in a statement.

Distributors, it said were obliged to sell gas at the price established by the MRA according to a methodology established by the authority in June 2010.
The chamber said that, in December, the distributors met Liquigas after the company, formally and in writing, did not accept to include the costings they presented to prove that current price mark-ups did not cover the increased costs of distribution.

The GRTU said that the costings presented by the distributors were within the price methodology as established currently by the MRA.

“Liquigas have always sold their LPG cylinders according to the maximum price established by the MRA until Easygas Malta Limited came along with a cheaper price.

“The competitive structure of the market forced Liquigas to also reduce its recommended price to consumers.”

The GRTU said that when competition was absent Liquigas held to the maximum price issued by the authority.

“It is an obligation under the price settlement mechanism to take into consideration the actual costs of distribution on a door to door basis.

“The maximum selling price authorised by MRA include a margin to cover also increased cost of distribution. The prices at which gas cylinders are being sold today by distributors to consumer include this approved margin,” the GRTU said.

It said that when Liquigas changed its recommended prices, the company failed to meet the increasing costs distributors had to face. The MRA was informed of the situation so that the matter could be managed according to established procedures. This was done during a meeting at the authority’s offices in December.

“The prices at which distributors are selling to consumers do not exceed the prices set by the MRA so the statement issued by Liquigas is incorrect.”

It was only aimed to create unnecessary conflict with the distributors, the GRTU said saying it strongly objected to Liquigas’ attitude.

The chamber said that while Easy Gas Malta agreed with individual distributors regarding cost increases in line with the MRA established parameters, Liquigas continued to disregard their legal obligation.

It appealed to Liquigas to meet the distributors’ representatives and settle the issue through the proper regulatory channels and not through uncalled for public announcements.

Sign up to our free newsletters

Get the best updates straight to your inbox:

You can unsubscribe at any time by clicking the link in the footer of our emails. We use Mailchimp as our marketing platform. By subscribing, you acknowledge that your information will be transferred to Mailchimp for processing.