MercoPress. South Atlantic News Agency

Fuel shortages reported in Uruguay and Argentina

The lack of inputs and fuel is a threat to the stability of Argentine rural producers

Fuel shortages have been reported on both ends of the River Plate. But while supply is expected to be back to normal before the end of this week in Montevideo, Argentine rural producers are concerned that the lack of diesel might impact their activity shortly.

With around 50% of the petrol stations in Montevideo, Canelones, and Maldonado affected, Uruguay's Gasoline Vendors Union (Unión de Vendedores de Nafta del Uruguay) said that this Wednesday at the end of the day it could be said that the stock will return to normal, albeit with regional variations.

This shortage started after a strike by the state-run oil company Ancap workers on Thursday kept freight drivers from entering the refineries on Friday to carry out the distribution during the long weekend.

Federico de Castro, manager of the Unión de Vendedores de Nafta del Uruguay, told Telenoche that “it is a generalized issue and as the hours go by it will increase, but there is a greater concentration of stock shortages in the southern area, and the biggest shortage is gasoline.” But he announced that come Wednesday at the end of the day it could be said that the stock would be back to normal.

Meanwhile, rural producers in Argentina fear they will have to paralyze most essential activities and urged the administration of President Alberto Fernández to come up with a solution. The Confederation of Rural Associations of Buenos Aires and La Pampa (CARBAP) warned about the consequences that this fuel shortage could have for agricultural and livestock activity since the agribusiness community depends heavily on diesel to carry out sowing, harvesting, and transportation.

The shortage of diesel oil threatens to halt the productive machinery and with it the generation of foreign currency for the country. Not only does the diesel shortage affect producers, but also the entire supply chain, it was argued.

CARBAP recognizes that Argentina is going through a difficult economic situation, and is aware of the need to take measures to address it. However, it pointed out that the limitation in foreign trade and the lack of access to essential inputs are harming the agricultural sector. To maintain a healthy grain production, which is fundamental for the inflow of dollars into the country, it is imperative to ensure the constant flow of fuel and other critical resources.

The lack of inputs and fuel threatens economic stability and the countryside's ability to contribute to the country's welfare. Therefore, they stated that a strategic approach was required to ensure an adequate and efficient supply of the essential resources that drive agricultural production.