Distributors ‘must stick to the established gas prices’

The increase in the price of gas cylinders by a number of distributors was arbitrary and had not been approved, the Malta Resources Authority said yesterday.

Distributors are not authorised to increase this fixed commission

Two days ago, gas supplier Liquigas complained that some of the 40 gas distributors were selling gas at higher prices than those allowed.

But the Chamber for Small and Medium Enterprises – GRTU, defended the distributors it represents saying the increase was only of 50c on the 12kg cylinder and 10c on the 15kg cylinder and that the prices were in line with MRA guidelines.

However, the resources authority yesterday said that, when it issued its official prices, it clearly stated that: “Distributors are obliged to sell the LPG at prices established by Liquigas”.

Since the distributors were Liquigas’ agents, they must stick to the prices issued by the company, the authority said.

The pricing mechanism approved by the authority allowed a fixed commission and “distributors are not authorised to increase this fixed commission”, it said.