MercoPress. South Atlantic News Agency

Boycott Shell's raising fuel prices, says Kirchner.

Amid growing inflation fears Argentine President Nestor Kirchner called for “a national boycott” against Royal Dutch/Shell Group for raising fuel prices.
Thursday's statement was President Kirchner's second verbal attack on the British-Dutch oil company in two days.

Kirchner called on the public not to buy "anything, not even one can of oil" from the only energy company to raise fuel and lubricants prices. "It's the best we can do when they want us to pay more than is due to them" insisted the Argentine president.

On Wednesday Mr. Kirchner said that Shell - the third largest gasoline distributor in Argentina - was seeking "excessive profits", following the company's decision to increase fuel and lubricant oil prices between 2.4 and 4.6%. Shell alleged that rising international oil prices were the cause of the hike.

However Spanish petroleum company Repsol-YPF, the most important liquid fuel company in Argentina, and Brazil's Petrobras on Wednesday announced that they would not raise prices in the short term.

Mr. Kirchner also criticized cattle farmers for the increase in beef prices.

The Kirchner administration has repeatedly warned that it will respond to price increases with greater taxes on fuel and beef exports.

"It's time for deeds and not words", said Cristian Folgar Deputy Secretary of Fuels Department.

The consumer prices index surged 2,4% during February, a rate that is equivalent to almost 30% annually.

Beef prices on the country's main Liniers live cattle market fell on Wednesday by 7% after having risen 23% since the beginning of February.

Argentina's 2005 national budget forecasts an annual inflation of 7.9%, compared to 6,1% in 2004.