MercoPress. South Atlantic News Agency

Argentina to up imports to meet increasing fuel demand

Smuggling fuel to bordering countries due to the price difference has resulted in recurrent shortages for Argentines.

Argentina's Federal Government Wednesday announced new measures to guarantee the proper supply of diesel fuel nationwide after governors of the country's 10 Grand North provinces complained last Friday of recurrent shortages.

The refineries will increase by up to 50% the imports of diesel oil in June and July to cover the increase in demand, among other measures, it was explained. Sources of the Energy Secretariat reported that YPF will increase the import of diesel oil by 50% going from two to three ships in June and in July to four, “in order to cover the bottleneck to which the exceptional increase in demand is exposing us.”

The other refining companies will also increase the volume of imports, incorporating a ship in June, which will entail a sizeable increase in the volumes funneled to the market.

At the same time, controls at border crossings will be strengthened in a joint effort with the Ministry of Security and Gendarmería Nacional to avoid the smuggling of fuel to neighboring countries, which has resulted in bordering provinces facing increasing shortages.

The Argentine Government also announced progress had been achieved with Refinor, which operates in the country's northwest, to facilitate its task in a joint effort with Energía Argentina and the crude oil producers in the region, to provide the volumes required by the refinery and increase the demand for crude oil.

Last Friday, Governors of the 10 Grand North provinces gathered in Tucumán and expressed their concern over the fuel supply issue to Cabinet Chief Juan Manzur, who was technically the hosting Governor on unpaid leave while holding a position at a national level.

Misiones Governor Oscar Herrera Ahuad, Friday warned that the shortage of diesel fuel was particularly detrimental to the yerba mate sector, which was halfway through its harvest season as concern grew among producers and transporters.

Manzur had promised to deliver a prompt solution. He explained that the national government had allocated sizeable resources to secure the supply of fuel, but it was not enough due to the increase in demand.