MercoPress. South Atlantic News Agency

Fuel smuggling from Argentina intensifies

Chilean Customs authorities have detected and warned about a considerable increase in the smuggling of cheap Argentine fuel into Magallanes region.

With fuel prices up to 40% cheaper on the other side of the border a growing number of Magallanes residents have been tempted to fill their tanks in Argentina and even try to bring back significant volumes hidden in cars, trucks and the regular bus services.

Hector Briceño head of the Customs department in Magallanes has warned about the danger of transporting fuel in improvised recipients plus the fact that it is an offence meaning the fuel will be confiscated and a hefty fine imposed on the smuggler.

The traffic is particularly intense in the Puerto Natales-Rio Turbio crossing where Customs have accumulated large volumes of confiscated fuel, but do not have the appropriate storage facilities.

Puerto Natales fuel distributors have complained about a 35% drop in sales and are now demanding similar prices to the other side of the border to make Chileans desist from trying to smuggle back fuel.

Authorities in Punta Arenas admit the seriousness of the problem and the difficulty of controlling such traffic but are confident that following October elections in Argentina, "things will return to normal, as markets dictate".