MercoPress. South Atlantic News Agency

Chile furious with Argentina's “discriminatory” fuel prices

Argentina's decision to increase fuel prices in frontier areas to vehicles with foreign plates was described Tuesday by Chilean president Michelle Bachelet as “inconceivable” and contrary to the integration path the region pretends.

"Countries can make all possible domestic decisions but we feel this is not a conceivable decision or signaling the right path towards greater integration", said a disappointed Ms Bachelet adding she will bring up the matter in the coming Mercosur presidential summit next week in Cordoba, Argentina.

"We can't endorse decisions like these which really are contrary to a greater integration in all fields, trade, tourism, vehicle and people's movements", insisted the Chilean president.

Late Monday Chilean Foreign Affairs minister Alejandro Foxley said the Argentine initiative was "discriminatory and contradictory", particularly when the bilateral relation with Argentina is undergoing a "peak of tension", following Buenos Aires unilateral decision to impose export fees to the natural gas pumped to Chile.

Mr. Foxley was also irritated because Chilean Mining and Energy minister Karen Poniachik was not informed of the Argentine decision when she visited Buenos Aires last week to talk about natural gas rates and supply.

"We would have expected that minister Poniachik was informed of the decision since it was announced 48 hours later and she wasn't at all aware of the impending decision", insisted Mr. Foxley.

"There's no reasonable explanation to the fact that because you're Chilean and are visiting Mendoza for the weekend, you must pay double the price of fuel for being in Argentine territory", said Foxley.

If petty smuggling is the issue, "that's what Customs, on both sides are for: if there is an illegal trade in fuel, make them pay fuel taxes", insisted the Chilean official.

"The issue will be considered in the coming Mercosur meeting and further on in the South American Community of Nations", anticipated President Bachelet.

Meanwhile the president of the Chilean Production and Commerce Chamber Hernan Somerville warned about the "delicate" situation Chile is facing because of its energy dependence on neighbouring countries.

"Chile is not just another partner for Argentina, we're first class partners and first class partners must be treated with consideration and respect", underlined Somerville.

The president of the Lower House Foreign Relations Committee, Deputy Jorge Tarud reacted to the decision saying "Chileans should abstain from doing tourism in Argentina as long as the fuel decision is effective".

Tarud called on other Mercosur members to adopt a similar attitude and if "Brazil, Paraguay and Uruguay join us, surely it will make Argentina think twice and change its mind. Tourism is a big source of income for Argentina".

The Argentine decision becomes effective at the end of the month. Fuel prices in Chile are double those in Argentina.