Lipigas defends its participation in distribution activities: “The gas market is very competitive”

Empresas Lipigas described 2021 as a difficult year. The distributor expressed concern about the rise in the price of gas and criticized the report of the National Economic Prosecutor’s Office (FNE) which recommends prohibiting Gasco, Abastible and Lipigas from participating in the distribution of liquefied gas to consumers.

“None of the measures proposed by the said prosecutor’s office solves the underlying problem: that we are importers of gas and price takers in the international market”, said the chairman of the board of directors of Empresas Lipigas, Juan Manuel Santa Cruz Munizaga, through the company’s annual report.

Santa Cruz addressed the work of the prosecutor’s office in his letter and criticized the recommendation made late last year. “We believe that a measure like this would be bad public policy, because it would produce exactly the opposite effect, because it would eliminate the most efficient players from the market, with greater technology and economies of scale,” said underlined the executive. .

From the company they also defended their management in the direct distribution of gas, since they would ensure good safety, efficiency and distribution, among others. “The most worrying thing is that false expectations are generated among people, who can again be frustrated if measures are not taken to effectively tackle the international price, as is the case with other imported fuels” , said the executive.

And he added that “in this scenario of increases, caused by the increase in the international price of gas, during the year 2021, irresponsible and totally unfounded accusations have been raised about an alleged collusion between companies of the sector, which in the case of Lipigas is not supported by any evidence whatsoever, so we categorically deny them.

Along these lines, Santa Cruz also commented that “the gas market is very competitive. For example, around 40% of users switch brands every time they buy a bottle”.

As for the company’s next steps, amid the gas distribution debate, Santa Cruz said it would participate in all legislative proceedings to defend the company’s position.

The president of Lipigas devoted the last parts of his message to talking about other projects that go beyond gas distribution. Santa Cruz underscored the goal of moving forward on issues such as green hydrogen and the commercialization of electric power

Other objectives of the company are to “seek new sources of income by relying on our main assets: the logistics capacity and the relationship with our customers”.

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