MercoPress. South Atlantic News Agency
Shell defies in court Argentine government ban on fuel increases
Shell refines 15% of Argentina’s fuels Royal Dutch Shell which refines about 15% of Argentina’s fuel is waging a court battle against a government ban that prevents fuel producers from increasing prices. Shell’s federal court complaint was filed last week following a government order on August 18 mandating oil companies to lower fuel prices to a pre-August 1 level.
Gasoline prices in Argentina rose about 21% in the first half of 2010, according to data compiled by Montamat & Asociados, a Buenos Aires-based energy research company.
“Over the past year fuel prices have had continuous increases, which have had a negative impact on different sectors of the economy,” the government resolution said. Controlling fuel prices is a “key component in the government’s objective to ensure economic growth.”
Shell and the Argentine government have battled over fuel prices in the last few years. In 2005, then-President Nestor Kirchner asked consumers to boycott Shell for raising prices. In 2007, the government closed a Shell refinery because of alleged environmental concerns. A year later, the government banned Shell from exporting refined fuel. The ban lasted about a month, until Shell reduced its fuel prices.
Shell, Europe’s largest oil company, is one of Argentina’s four biggest gasoline station operators. The others are Spain’s Repsol YPF SA, Exxon Mobil Corp., the world’s largest oil company, and Oil Combustibles SA, which bought Petrobras gasoline stations earlier this year.
Shell owns a refinery in Argentina with the capacity to process about 113,000 barrels a day of diesel and naphtha fuels. Shell confirmed the federal court filing by e-mail.
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Read all commentsThis will be an interesting battle........
Aug 22nd, 2010 - 10:42 am 0Needless to say that my money is on Argentina :-)))
For what that's worth..........!
Aug 22nd, 2010 - 12:23 pm 0”Argentina went through steady inflation from 1975 to 1991. At the beginning of 1975, the highest denomination was 1,000 pesos. In late 1976, the highest denomination was 5,000 pesos. In early 1979, the highest denomination was 10,000 pesos. By the end of 1981, the highest denomination was 1,000,000 pesos. In the 1983 currency reform, 1 Peso argentino was exchanged for 10,000 pesos. In the 1985 currency reform, 1 austral was exchanged for 1,000 pesos argentinos. In the 1992 currency reform, 1 new peso was exchanged for 10,000 australes. The overall impact of hyperinflation: 1 (1992) peso = 100,000,000,000 pre-1983 pesos.”
When the judges are controlled by the Ks of course they will win. Obviously the gov't wants it and is trying to drive Shell out of the country so they get it for free. Just like they have doen with teh water company, airlines, telephones, the list goes on and on.
Aug 22nd, 2010 - 01:43 pm 0Then they wonder why no one will invest in the country. Stupid Stupid people.
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