The monopoly of the National Gas and Industrial Company (GASCO) in distributing and refilling cooking gas cylinders is likely to end soon. Emirs of various regions have recommended opening the door for competition in the field, according to sources. The Council of Competition Protection, under the chairmanship of Dr. Fawzan Al-Rabea, Minister of Commerce and Industry, has already approved a recommendation to withhold the renewal of the GASCO contract when it expires in 2014, and open the sector to new investors. According to the sources, chances to renew GASCO's contract are slim because the company failed to open new stations for refilling gas cylinders in Hail, Tabuk, Jizan and Al-Ahsa. Consumers will notice an improvement in services once the sector is opened to other investors, they said. Cooking gas will be available in abundant amounts in the market and with different specifications and in cylinders of various sizes as is the case in the GCC market, according to the sources. Earlier this year, the Ministry of Commerce and Industry resolved the plastic gas cylinders crisis between GASCO and Hathar Manufacturing Company. The crisis started when some citizens complained to the ministry that they could not refill their plastic cylinders or get a refund. The ministry asked GASCO to refill cylinders and Hathar to refund money to those who do not want plastic cylinders. The ministry halted the distribution of plastic cylinders and withdrew 40,000 from the market because the contract stipulated the distribution of only 50,000 such cylinders while the company distributed 90,000. GASCO started its activity after the merger of the National Gas Company in Dammam and its branches in Riyadh and Jeddah. GASCO distributes products to consumers through authorized agents and those who deal directly with gas cylinder filling stations owned by the company throughout Saudi Arabia. GASCO also owns 30 percent of the shares of the Saudi Factory for Cylinders and six percent of the shares of the National Gas Industry.
