Tuesday, 22 February 2022 23:07

Propane gas distributors protest gainst Law Reform Proposal

Written by Evelyn Alas

In a press conference, some propane gas distributors spoke about the recent proposal to reform the Law Regulating the Deposit, Transportation and Distribution of Petroleum Products, presented by the deputies of Nuevas Ideas, to the Economy Committee of the Legislative Assembly.

In this space, which gathered some presenters of small and large distributors, the participants shared their position in relation to the proposal presented last february 15, which seeks the free collection and filling of liquefied gas cylinders, by means of the reform to Art. 8 of the regulation.

According to the distributors, the arguments that support the reform to the law do not coincide with the way in which they provide the distribution service and could affect them directly, making the delivery service more expensive, so they were open to share their experience so that there is a better understanding of the business.

In relation to two aspects highlighted in the reform proposal regarding the free-filling system and the lack of choice of consumers to choose the product of their preference, Yubinny Galdámez, representing the distributors gathered, said:

"Through the color of the cylinder, when a customer asks us for one, it is he who finally decides which brand he prefers since he knows the advantages and differentiators that each one, with effort, offers them. In the same way, if they identify a cylinder with an inaccurate weight or that is in poor condition and represents a risk to their family's safety, the customer can choose another brand”.

The exchange system and the most sensitive points of the reform seek to regulate the exchange of cylinders, however, in daily practice; customers are the ones who decide which brand to buy and distributors sell without any restrictions. After selling the gas requested by the customer and when the time comes to supply the product again, the cylinders are delivered to the companies, regardless of the color, and without any problem.

Another aspect pointed out is that, by releasing the filling system, any company could fill the cylinders. According to them, there are proven experiences in countries such as Guatemala and Costa Rica where the same system is in place and, as a consequence, the cylinder fleet has deteriorated.

Added to this is the possible proliferation of racking, a practice that has been questioned, as well as the loss of benefits that consumers currently receive, such as home delivery at no additional cost. "It is important to understand that, with a change of this type, the impact on price will be a reality since by changing the conditions under which a gas cylinder is delivered, it will be difficult to maintain the costs of the home delivery service we currently provide thanks to the extra profit margin that the gas companies give us to deliver benefits such as this. This would result in a setback for the consumer since he would have to go directly to the points of sale to buy his cylinder", concluded Galdámez.

The distributors closed their intervention by recognizing the efforts that can be made to improve the way in which salvadorans receive gas in their homes, and calling on legislators, but stressed the importance that any change be based on an analysis of the situation, supported by technical studies to back it up.