2023-10-31 21:39:01
A few weeks before the runoff, in which he will face the libertarian candidate Javier Milei, the Argentine Minister of Economy, Sergio Massaand presidential candidate must face difficulties in the supply of fuel, which have caused long lines at service stations and gasoline shortages in some locations in the country.
The problems in the fuel distribution They generated questions regarding the minister and candidate from businessmen, while the ruling party points to speculation generated by the business community.
Massa himself attributed the problem to the fact that following the October 22 elections a devaluation was predicted in the country, so “there was retention of stocks” from the companies.
“The oil sector took the opportunity to exert greater pressure on the Government at an electoral time in order to obtain, not only a better price thanks to this boycott, but also to put Massa’s political project in check,” the expert told Sputnik. on energy issues.
Solorza noted that there are scheduled shutdowns at several refineries in the country, which reduced capacity, storage and stock de combustible. The timing of the shutdowns at some of the plants deepened the problem, he noted.
Added to this situation is “a delay in fuel prices” that causes discontent among companies. In this sense, a temporary price freeze in the sector has been in force in the country since August, following the 12.5% increase implemented by the oil companies.
The agreement, which had been agreed between the Government and the country’s producers and refiners, was valid until October 31.
US judge sentences Argentina to pay up to $16 billion for expropriation of YPF
September 8, 17:42 GMT
The energy analyst explained that the Government gave certain benefits to the oil companies by removing taxes in exchange for freeze pricesin addition to granting them preferential prices for exportsas well as more convenient prices to implement programs or projects that promote activity.
Another factor that puts pressure on fuel in the South American country is the increase in demand due to agricultural activity, on the rise due to the start of the agricultural planting. In this framework, the expert pointed out that the wholesale fuel market became more expensive than the domestic one.
About ElDiarioAr consigned that both truck drivers and producers bought in the retail market at more convenient prices, without a refusal from the stations, which they took advantage of to sell more. “Reserves have decreased”: Bolivia evaluates how to improve its hydrocarbon production
The response of the oil companies
The energy companies Yacimientos Petroliferos Fiscales (YPF), Raízen, Trafigura and Axion they warned that in recent days extraordinary levels of demand were recorded as a consequence of the increase in mobility that the October electoral instance implied, and they recognized the influence of the beginning of agricultural planting, among other factors.
The companies also identified a greater dependence on fuel imports due to the stoppages of various refineries and recognized that a “overdemand” due to an “expectation of shortages.”
Argentina inaugurates key pipeline for reserves of unconventional hydrocarbons
The oil companies committed to normalizing the situation in the coming days and achieving supply throughout the country, highlighting that the shutdowns of some plants are essential for the continuity of activity with quality standards.
A bad response from the Government
Massa gave an ultimatum to the oil companies and assured that they had until the night of Tuesday the 31st to resolve the country’s supply, otherwise there will be no fuel exports. “Argentine oil “It’s for the Argentinians.”he remarked.
Solorza considered that the Government trusted that the situation would not worsen and might be resolved through dialogue, although this was not the case. For the expert, Buenos Aires did not take the necessary precautions such as, for example, not allowing stoppages to take place in the refineries for maintenance until the situation was resolved.
“That is a clear point of market monopolization and that is clearly a lock-out of the energy companies towards the Government, which might not have allowed it in any way if they had been monitoring those scenarios, monitoring the oil companies, their behavior and the behavior of the market,” he noted.
For Solorza, Argentina has a great opportunity to export, but at the same time it has to think and plan regarding domestic supply and competitive prices.
“The excessive ambition of a sector that is clearly being benefited cannot put national production and all Argentines who have to move, who have to study, who have to work, to SMEs, to the industry,” he stressed. .
“We must review this situation and modify it. It is a very important task for the two candidates, both Massa and Milei. Any of the two who become president cannot repeat an error of this nature, which is bad practice with an unacceptable boycott by the energy companies,” he analyzed.
Sergio Massa and Javier Milei will face each other in the runoff, in which it will be decided who will hold the presidency of the southern country, following, once morest all odds, the current head of the Economy obtained 36.66% of the votes and was placed as leader, facing the democratic day of next November 19.
Don’t miss the most important news
Subscribe to our Telegram channels via these links.
Since the Sputnik app is blocked abroad, in this link you can download and install it on your mobile device (only for Android!).
We also have an account on the Russian social network VK.
1698806254
#Fuel #shortage #Argentina #mismanagement #boycott #Government
