MercoPress. South Atlantic News Agency

Fuel relief to Argentine northern provinces on its way, Casa Rosada says

In provinces bordering Brazil and Paraguay fuel demand has skyrocketed, Cerruti stressed

Argentina's Presidential Spokeswoman Gabriela Cerruti Thursday announced the supply of diesel to the northern provinces was “on the way to being solved” through “extra imports” of fuel.

She also confirmed that the bidding process for the construction of the President Néstor Kirchner Gas Pipeline was “progressing according to the expected terms” and pointed out that Antonio Pronsato, who resigned as head of the Executing Unit, “was a lesser-ranking official.”

In her usual weekly briefing every Thursday at Casa Rosada, Cerruti explained that the shortage of diesel fuel in the northern provinces “caused concern among the governors” and this concern was transmitted to the Chief of Cabinet, Juan Manzur, who in turn conveyed it to President Alberto Fernández.

The spokeswoman also said she believed three factors had led to a 20% growth in the demand of diesel in the northern provinces: The seasonality of harvests, economic growth, and sales to incoming vehicles from Paraguay and Brazil seeking to take advantage of the country's lower prices.

Read more: Argentina to up imports to meet increasing fuel demand

The Energy Secretariat released a report showing a yoy growth of 17.7% nationwide, in the whole country, but in provinces bordering Brazil and Paraguay fue demand skyrocketed: 57.4% in Formosa, 37.5% in Corrientes, and 36.8% in Misiones.

Hence, “any smuggling crime will be controlled at the border points”, either of fuel or of soybean and byproducts, Cerruti also explained.

Regarding the Néstor Kirchner gas pipeline, the spokeswoman echoed Energy Secretary Darío Martínez about the compliance with the terms established in the bidding process and said the Government viewed the project as “the most important infrastructure work of the last 40 years.”.

“Consumption of gas in the world is strategic and Argentina can become a strategic gas reserve,” she also underlined.