MercoPress. South Atlantic News Agency
Argentina reaches agreement with oil companies for temporary freeze of fuel prices
Argentina's government and leading oil companies hammered out a plan to gradually trim artificially high wellhead crude prices over the next three months in exchange for a temporary freeze on retail fuel prices. Read full article
Comments
Disclaimer & comment rulesThe final legacy from TMBOA: 47% inflation!
Aug 16th, 2016 - 11:14 am - Link - Report abuse 0The stupid cow had no idea about running a country, except to rob it for her and her brood.
Let the chips fall where they may.
Aug 16th, 2016 - 11:48 am - Link - Report abuse 0All these market lies and distortions are so hard to keep track of.
Stop choosing winners and losers.
The government faces “a challenge illustrated by a heated controversy over gas and power rate increases that were recently blocked by local courts.”
Aug 16th, 2016 - 02:48 pm - Link - Report abuse 0The Macri administration is now applying pressure on Supreme Court judges, who later this week may rule on whether to endorse or quash the lower courts rulings freezing the gas and power rate increases.
Information leaks indicate that the Supreme Court judges may rule in favour of public hearings in which the energy companies would have to open their books to justify utility bill increases averaging 500 per cent.
If the SC mandates public hearings, previous increases will be quashed.
Which will go on to show the clumsiness of the government for allowing the utility price increases without holding public hearings in the first place.
Reekie: “..... for allowing the utility price increases without holding public hearings in the first place.”
Aug 16th, 2016 - 03:37 pm - Link - Report abuse 0Or we may see the idiocy of allowing the extravagant utility subsidies that took place under the CFK regime without holding public hearings in the first place.
#4 Marti
Aug 16th, 2016 - 04:08 pm - Link - Report abuse 0“...we may see the idiocy of allowing the extravagant utility subsidies that took place under the CFK regime without holding public hearings in the first place.”
Two wrongs doth not make a right, Marti.
If the CFK government was wrong for not holding public hearings, then the Macri administration could have shown a different, more transparent approach.
Developed countries will hold rigurous processes before allowing private companies to raise utility bills.
The intention is to protect the public and hold companies to account.
In the unlikely case that utility costs were to increase as much as 500 per cent in any developed economy, you can bet public regulators would require a lot of explaining.
If, as Marti claims, the increases are justified, why then the government stubbornly refuses to hold public hearings? Perhaps the government is afraid of such process? Perhaps the opening of the books may show a reality different from what the government purports?
Those are the questions that, several months after the decision to increase the utility bills, remain unanswered--and no amount of semantics can hide that reality.
Jerk that bandaid off.
Aug 16th, 2016 - 05:48 pm - Link - Report abuse 0If you use it - pay for it.
Perhaps this will lead to appliance efficiency, better insulation and construction and last but not least - moderation with the thermostat.
@6 “Perhaps this will lead to appliance efficiency, better insulation and construction and last but not least - moderation with the thermostat.”
Aug 16th, 2016 - 06:28 pm - Link - Report abuse 0Ha ha ha. You haven't been here long, have you? It is the intention of the Peronists to continue massive energy waste and high costs to the government through impossibly expensive utilities subsidies. “Energy conservation” is demonstrably not a Peronist value. While the civilised world (and even Chile) learned long ago to employ gas appliances with energy-saving piezo ignition instead of pilot lights, the standard practice here in Argentistan is.... the exposed gas-wasting pilot light !! (I had to go to the Zona Franca in Punta Arenas to find a decent “calefon piezo”)
#6 chronic
Aug 17th, 2016 - 05:52 pm - Link - Report abuse 0“Jerk that bandaid off. If you use it - pay for it.”
Unfortunately, governments are supposed to work for the common good and can ignore public concerns only for so long.
Unlike MP commentators, they cannot afford themselves the luxury of reckless, simplistic, grandstanding solutions as suggested above.
Wall Street Journal article, on why confidence in “returning” to Argentine bonds may not be such a good idea after all, and why many investors are shunning Argentina. Not that we are surprised.
Aug 23rd, 2016 - 02:39 am - Link - Report abuse 0One comment: ”“Investors are not willing to go into these small risky deals.”
The rest:
http://www.wsj.com/articles/even-high-yield-hunters-shun-some-argentine-bond-offers-1471885022
#9 Marti
Aug 24th, 2016 - 04:54 am - Link - Report abuse 0In spite of his willingness to open wide the doors and give all the guarantees, the Macri administration may appear too clumsy in conducting business. The speed at which the re-distribution of wealth is taking place has been shocking to say the least, and the social climate is rapidly deteriorating. Investors don't like instability in the least. Argentines have still fresh memories of the 1990s and attempts to a repeat will prompt active rejection by society.
@10 So you have begun to recognise that Argentina was excessively risky under the Peronismo of the 1990s, hostile to foreign investment under the Kirchners, and the memory of that has left an unsavory taste that continues to keep most foreign investment far, far away.
Aug 24th, 2016 - 02:38 pm - Link - Report abuse 0Commenting for this story is now closed.
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