MercoPress. South Atlantic News Agency

Shell sales in Argentina collapse 70%

Sales of Shell in Argentina dropped 70% since last Thursday when President Nestor Kirchner called on consumers to boycott the oil company for having increased the price of fuels 4,2%, said Carlos Calabró, president of the Argentine Federation of Fuel Businessmen.

"We're very concerned because there are many Shell gasoline service stations that simply can't cover costs because sales have plummeted 70%", said Mr. Calabró.

Following President Kirchner's call to boycott products from Shell, which controls 16,5% of the Argentine fuel market with 930 service stations, picketers groups allied to the current administration occupied several stations impeding the sale of fuel.

The boycott is creating "innumerable problems to a great number of Shell service stations. And we must keep in mind that picketers' actions can extend to any sector. And I believe there's a growing public opinion consensus against this type of activities", recalled Mr. Calabró.

The protests extended to service stations identified with Exxon which also increased fuel prices over the weekend. Repsol-YPF which controls 50% of the market together with Petrobras and Sol owned by the Uruguayan government have left prices unchanged.

"A majority of people reject price hikes" but "we don't need the kind of reaction enforced by picketers", added Mr. Calabró.

However Luis D'Elía possibly the most notorious of all picketers' leaders justified the blockading of gasoline stations arguing that "in this country oil companies have financed coups, installed dictatorships and promoted hyperinflation".

"Fuel is the basic cost in any economy. If fuel increases, so does the price of bread, meat, bus fare, milk. We've been looking at what's going on and we are very worried, so that's why we've taken to the streets", added Mr. D'Elía.

Actually the Argentine government is concerned with a possible surge in inflation following the strong increase in some of the basic basket products prices such as bread and beef. Mr. Kirchner has also attacked farmers and industry for this very reason.