RIYADH: A dispute between a Saudi gas company and importer regarding the viability and reliability of plastic gas cylinders has been resolved thanks to the intervention of the Ministry of Commerce and Industry.
The ministry brought together senior officials of the National Gas and Industrial Company (GASCO) and Hazar International Company to the negotiating table on Monday and clinched an agreement between both parties, Al-Eqtisadiah business daily reported on Tuesday.
The ministry took action after it had received several complaints from consumers saying Hazar, which is in charge of importing and marketing plastic cylinders in the local market, refused either to change defective plastic cylinders reinforced with fiberglass or refund their original value, an official source at the ministry said.
"This prompted the ministry to hold an urgent meeting with senior executives of the two companies. According to the agreement, Hazar will compensate consumers who want to return their cylinders," he said, adding the agreement did not impose any deadlines for refunds.
The official underscored the keenness of the ministry in solving issues that affect consumers. The agreement was also regarded as a major achievement for new Minister of Commerce and Industry Dr. Tawfiq Al-Rabiah in troubleshooting such disputes.
According to the agreement, GASCO, responsible for distribution of cooking gas in the local market, would resume filling plastic gas cylinders at all its stations across the Kingdom. It had stopped doing so from last Saturday at the end of a 30-month contract signed with Hazar.
Director of GASCO Muhammad Al-Shabnan said the company had decided to stop filling the plastic gas cylinders because the trial contract had expired. "The contract makes it imperative for the importing company to trial the cylinders for a certain period. Whether it has succeeded or not, by the end of the contract the company should collect the cylinders from citizens and compensate them as they will not be fit for use in the future and cannot be used in our centers due to the differences in size," he said.
Al-Shabnan denied the metal gas cylinders were causing about 40 percent of fires in the Kingdom and said official statistics from the Civil Defense refute this claim.
Hazar will now withdraw 40,000 plastic cylinders from the market and re-export them. It will also stop distribution of any more cylinders in the local market. The company had earlier imported 90,000 cylinders to the local market even though the contract between the two companies was to distribute 50,000.
As per the agreement, Hazar company should shoulder full responsibility for any faults with the gas cylinders including manufacturing defects in addition to ensuring their quality and safety. GASCO has nothing to do with such defects.
The meeting was attended by senior officials of the ministry as well as the director general of GASCO and deputy chairman of the board of directors of Hazar.
© Arab News 2012
