The GRTU this afternoon denied claims by Liquigas that it was backing or supporting a cartel of 23 gas distributors and said ti would hold Liquigas responsible for damages sustained.

The gas company complained two days ago that it was being prevented from distributing gas cylinders.

In its reaction, the GRTU said: "Liquigas Malta has no limits to arrogance. It entered a market where an efficient system of distribution existed already. A system that was and still is based entirely on consumer benefit and that has been in place for over 40 years."

"Conveniently in October 2008, a few months after the previous general election, Liquigas was served with a silver platter by virtue of the tailor made Legal Notice 249 of 2008, that established the Gas Market Regulations from which Liquigas benefited to the detriment of the Gas Distributors who were left in the dark.

"The 1992 agreement, which was signed between the Regulator and the Gas Distributors, is still valid. The report issued by the Director General of the Office for Competition within the Malta Competition and Consumer Affairs Authority (MCCAA) has not been confirmed and is still pending before the Competition and Consumer Appeals Tribunal in Court.  Consequently it has neither been confirmed nor refused."

The GRTU insisted that territorial exclusivity for gas distribution remained in place, as it was not Liquigas that decides rights or wrongs in this country.  

It noted that in March 2010, Liquigas SpA in Italy was fined €17.1 million for collusion with two other companies saying that together they created a 10-year cartel in Sardinia.