Friday, 18 February 2022 02:24

Congressmen seek to avoid propane gas supply shortage in the country

Written by Evelyn Alas

Deputies of the Legislative Assembly seek to reform the Law Regulating the Deposit, Transportation and Distribution of Petroleum Products, in order to improve the service of the article for the welfare of consumers.

The current legal framework decreases the advantages in terms of free consumption, prices and commercialization of said product, whose final impact falls on salvadoran families, compared to the rest of the countries in the region is obsolete.

To learn a little more about the reforms that the parliamentarians are requesting, here are 8 benefits they will bring to consumers:

  1. Avoid shortage of propane gas supply.

The lack of exchange of cylinders is a common practice that causes negative effects in the distribution of propane gas, because companies cannot fill and sell their cylinders. The result of this is that the delivery of the product takes hours and sometimes even days, delaying the distribution and commercialization processes.

2. Safety for the distributors and the inhabitants of the surrounding area

Due to the shortage, the cylinders are distributed from the plants to the distributors at night. This generates discomfort for citizens and puts drivers at risk. With the reform, this activity may be carried out during business hours, since the cylinders may be filled at any plant.

3. Promotes healthy competition

Companies with more market share have the opportunity to keep more cylinders in distribution, causing smaller companies to suffer the withholding of their brand cylinders, generating anti-competitive practices. The reform ensures that companies have healthy competition and focus their efforts on the benefit of users.

4. Responds to the needs of the current market

The current state of the country's market, coupled with legal regulations that are more than 50 years old, creates a barrier to the entry of new competitive companies committed to providing a quality service that benefits salvadorans. In addition, it is the only country in Central America that manages an obsolete system of exchanges, despite the fact that the companies that are in the national market also compete throughout the region.

5. It boosts the free market

Because of the legal battles sustained by some companies, the population has been affected by the shortage of propane gas and Salvadorans have found themselves in the difficult realities of standing in long lines outside these industries to be able to buy a gas cylinder.

6. Quality and better products for users

With this law, free competition among the country's companies will be achieved, each one striving to provide the best quality service to the salvadoran population, breaking down the barriers to access to new actors.

7. Improves and guarantees industrial safety

This law reform will avoid the accumulation and deterioration of cylinders due to different factors, thus preventing major accidents such as those that occurred last year in these gas industries that endanger the lives of salvadorans.

8. Increases direct benefits to the population

In addition to the economic relief programs of the current central government, including gas subsidies, which have a positive impact on salvadorans: with this reform, the quality and guarantee of a better product and service will directly benefit the majority of the population.

Currently, the bill is being studied by the Economy Commission of the Legislative Assembly for its due study and final opinion.