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Montevideo, November 29th 2023 - 07:46 UTC



Fuel shortages expected in Uruguay amid distribution conflict

Monday, November 13th 2023 - 09:44 UTC
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Ancap's Stipanicic insisted his company was not to blame Ancap's Stipanicic insisted his company was not to blame

The guild grouping Uruguay's fuel distributors announced a 72-hour strike starting Monday which could lead to shortages in the South American country, it was reported in Montevideo. The measure was adopted after changes in the Law of Urgent Consideration (LUC) regarding fuel distribution regulation costs affected the activity, it was explained.

In this scenario, Ancap President Alejandro Stipanicic recalled that the state-run oil company was not involved in this announcement and therefore it was not appropriate for it to participate in distribution matters. He also pointed out that Ancap delivers the fuel to the plants it has in the country and the arrival at petro stations was the responsibility of the distribution chain.

Prior to these regulatory modifications, the cost of freight was absorbed by Ancap, but as of next year, the Regulatory Unit of Energy and Water Services (Ursea) determined that an additional amount is to be fixed between distributors and transporters. This amount is to be calculated on the basis of the amounts of supply required by each retail point.

In this scenario, the Asociación de Transportistas de Combustibles (Association of Fuel Transporters - ATC) issued a statement announcing the measure of not loading fuel at Ancap plants to supply gas stations “in view of the government's decision to terminate next December 31 the relationship between Ancap and the transport companies that have been carrying out secondary distribution for more than 20 years,” the ATC board of directors said in a communiqué.

“It is not possible to de-supply the country during the sowing and harvesting season,” said Senator Sebastián da Silva of President Luis Lacalle Pou's National Party. “It may be a fair statement, but the opportunity is terrible,” added the lawmaker who also owns a rural producing business.

The lawmaker also pointed out on X that Uruguay was going through the planting and harvesting season, in the run-up to a summer that will be marked by the climatic phenomenon known as “El Niño” which required that “all windows without rain are essential.”

“The country cannot be deprived of supplies during the sowing and harvesting season...,” he argued.

Categories: Energy & Oil, Politics, Uruguay.

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