The government of Argentina is planning to suspend a price-setting system for domestic fuel sales next month thanks to the recent rise in global oil prices, the country’s energy and mining minister said Monday.
Domestic fuel prices in Argentina are currently set by the government and companies that produce and refine oil.
The system is designed to sustain interest in domestic drilling when global oil prices are low but allows for the market to determine fuel prices when they are deemed high enough.
Energy and Mines Minister Juan Jose Aranguren said the recent recovery in global crude prices should let the government suspend price-setting for domestic fuel starting in October. He added that a drop in global oil prices could bring it back.
Companies that operate refineries in Argentina include state-owned YPF SA, the country’s biggest oil company, as well as private firms Axion Energy Argentina SA, Royal Dutch Shell Plc and Pampa Energia SA.