(Reuters) – Argentina’s government and oil corporations said on Saturday that fuel deliveries were beginning to arrive, which would ease shortages in the coming days, after a surge in demand caused long lines at gas stations.
Ten shipments of imported fuel are beginning to arrive through the government, the distribution of which may take only a few days, Energy Minister Flavia Royon told a local radio station, stressing that there will be no sharp increase in prices.
Royon attributed the shortage of the component to tourism over a long weekend and rumors of possible price increases after the Oct. 22 presidential election. The second circular will enter into force on 19 November.
“It generated a psychosis of the ‘we have to go and refuel,'” he said.
Argentine refineries supply 80% of the local market while the rest comes from fuel imports.
Long lines at the pump have added to the frustrations of Argentines already under pressure from an economic crisis with inflation approaching 140% and a currency that has lost 42% of its value this year.
Oil corporations YPF, Raizen, Trafigura and Axion Energy said in a joint statement on Saturday that that source would normalize in the coming days.
Among the factors driving the shortages, companies cite strong demand, presidential elections, the start of planting, and a higher-than-usual reliance on imports.
They also denounced “excessive demand waiting for shortages. “
The source of diesel is a particular source of concern for farmers, who say a shortage could affect the start of planting, which is critical for the country’s main soybean and corn crops.
Thank you for submitting a comment! One of our directors will review your comment before posting it on the website.