The head of Galp Energia has waded in to the bottled gas row, questioning why there needs to be new legislation in a market that was working perfectly well before the government interfered.
Carlos Gomes da Silva of Galp says the new law for bottled gas is complex, needs to be clarified, has security risks and will add costs that the hapless consumer will end up paying.
"We're still trying to understand some of the issues underlying the legislation and we do not see how some of the measures can be implemented," said the CEO of Galp Energia, adding that new law is "technically complex and there are security risks" and that "the legislature must be able to find a common sense solution."
"Galp Energia will be prepared to enforce the law. That is our principle," said Gomes while considering it strange that "a market at the height of its maturity still needs such legislation."
The market for bottled gas is declining in Portugal with LPG in bottles currently accounting for 75% of gas sales.
As from January 18th, 2016, all gas retailers will have to give money back to customers for the small amount of liquid gas left in the bottle, according to the decree published last week in the Official Gazette.
The vice president of the National Association of Fuel Distributors, José Reis, said of the legislation when passed by the Council of Ministers in August, that the measure "is an incentive for there to be deaths," as people will try to unscrew the still pressurised gas containers to fill them with other liquids so as to obtain a cash refund.
As it stands, common sense is playing no part in this bizarre legislation that adversely will affect retailers and consumers with additional annoyance, costs and the introduction of an incentive to tamper with highly dangerous pressurised gases.
None of this will really change the CEO's life as Galp Energia today posted a 49% rise in adjusted quarterly net profit, swollen by higher refining margins and a steep increase in oil output in Brazil despite the Petrobras scandal.
Carlos Gomes da Silva said that the 2015 gross profit should be at the top end of the predicted range of €1.3 billion to €1.5 billion.
See also: http://www.algarvedailynews.com/news/6985-gas-bottle-refunds-put-the-public-at-risk
