Liquigas accuses Easygas of gas cylinder fraud
Gas firm files criminal complaint against rival, which says it knows nothing about it
Malta’s largest gas cylinder distributor has filed criminal complaints against a competitor, alleging that Easygas Ltd is committing “fraud” and “commercial deception” by filling Liquigas cylinders with its own gas product.
According to the complaints, “it appears that Easygas, either on its own initiative or in collaboration with others, is engaging in the illegal practice of distributing Liquigas cylinders, most likely filled by the company itself”.
Liquigas also alleges that Easygas and its distributors are circulating cylinders that carry expired testing dates.
Replying to questions, Easygas said it too “has filed reports concerning the filling of their gas cylinders by unauthorised third parties”.
Liquigas, which distributes green and yellow gas cylinders, and Easygas, which distributes dark grey cylinders, are Malta’s two operators.
Liquigas has the lion’s share of the market, with roughly two-thirds of the market, Times of Malta understands.
Gas distribution industry regulations lay down that a company cannot fill its own LPG gas into a competitor’s cylinder.
If it collects a competitor’s cylinder, it must return it to the company that owns it within seven days, the LPG market regulations say.
A 2020 court decision had also ruled that a company continues to be the owner of a cylinder even after selling the gas inside the cylinder to a customer.
Wrong seal
Throughout the first three months of this year, Liquigas has filed at least five criminal complaints containing similar allegations against its main competitor.
Each complaint, filed at the Żurrieq police station, outlines a specific example of the days when Easygas allegedly filled Liquigas cylinders with their gas.
In one complaint earlier this month, Liquigas claims that a woman contacted their customer service representative after receiving a green cylinder that had the cylinder seal usually used by Easygas.
The seals used by Liquigas are a light green shrink type seal, while the Easygas seal is white or green, “in the form of a hat which is placed on a cylinder like a tap”, according to the complaint.
Besides the seal indicating that the cylinder was filled by Easygas, the complaint also says that the cylinder given to the woman had an expired test date.
Testing for a cylinder’s durability is done periodically as a safety precaution.
The four other complaints follow a similar course of events and allege the same breaches against Easygas.
The allegations include appropriation, commercial deception, fraud, fraudulent gain and interfering with the property of another person.
Contacted for a reaction, a spokesperson for Easygas said: “Kindly note that we are not aware of any complaints filed by Liquigas and, to date, the police have not approached us with any such complaints. When and if any such complaints are received, we will address them in the appropriate manner.”
Fines
Easygas added that it has filed reports concerning the filling of its gas cylinders by unauthorised third parties, saying it was still awaiting the outcome. Asked for details of these reports, the company said that doing so would prejudice the investigation.
Liquigas did not reply to a request for comment at the time of writing.
This is not the first time the two gas companies have come to legal blows over cylinders.
Easygas was ordered to pay Liquigas almost €580,000 in 2015 after the court concluded that Easygas had taken over, stored and used gas cylinders owned by Liquigas.
The case began in 2011 after Liquigas complained that Easygas had taken over a large number of gas cylinders belonging to it. Liquigas said some had been exported and efforts made to erase their distinguishing marks of ownership.
The court of appeals upheld the judgment in 2020 but reduced the amount owed to Liquigas to €436,965.
Liquigas won another court battle against its competitor in 2019 when Easygas was ordered to pay €146,335 for illegally and fraudulently trying to pass off the Liquigas supply of cylinders as its own by overpainting thousands of green cylinders in the distinctive dark grey colour of Easygas.