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In a world where some commentators speculate that there would be a glut of energy and distilled products due to high oil prices, falling Chinese demand, and a looming global recession, Argentina will win the hand: As La Nación reported on Wednesday, refineries and retailers increased costs by between 7. 6% and 9. 6%. in the context of what is shaping up to be a historic energy crisis.
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The South American country, the top producer of shale oil and gas, has been suffering from gas and diesel shortages since last week due to disruptions in domestic refining and a lack of dollars that is delaying imports.
Scenes reminiscent of Venezuela in recent years have recently sprung up across Argentina, with cars around the block looking to refuel at stations. Jorge Ferro, a 42-year-old representative in Buenos Aires, tried to fill up last week at an Axion fuel station in the affluent Recoleta neighborhood, but agents told him they had run out of “super” and may only be offering 4,000 pesos ($11) of premium fuel.
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“When I told them to move on to some other gas station, they told me that all the nearby gas stations were closed,” Ferro said.
Election uncertainty is the main headache for travelers. Ahead of the Oct. 22 general election, some gas stations suspended sales as consumers tried to take inventory of gasoline, fearing a sharp devaluation of the currency that appears to be delayed for now. Economy Minister Sergio Massa will face foreign candidate Javier Milei in the final round of voting on Nov. 19. Even after the vote, some channels claim they are being removed entirely.
Translation:
Salta without gasoline, the population of Salta is looking for gasoline in the town of Salta. The lack of fuel source is still felt on Wednesday afternoon, at this time gas stations of all brands are out of fuel.
Meanwhile, Argentina’s severe shortage of dollars is preventing YPF from paying for its fuel imports for the time being. The detained shipment has a volume of 120,000 cubic meters, accounting for 7% of the country’s monthly fuel sales, or about $150 million, a source said. Said. Argentina has no foreign capital and is struggling to meet a $44 billion deal with the International Monetary Fund, its only primary source of financing.
This has infuriated organizers of next month’s presidential runoff between the economic leader of the ruling Peronist coalition, Sergio Massa, who is considered the frontrunner, and radical libertarian Javier Milei.
“The truth is that I work with the car and it’s like fetching water in the desert,” said Raul Paretto, a 38-year-old Cabify driver. “It’s sad because we don’t know what can happen; Live day by day. “
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Also on Saturday, Argentine oil and fuel manufacturers said in a statement that fuel shortages would “normalize” in the coming days. Argentina announced last week that it would import 10 tanker cargoes in the coming days to address shortages following a surge in demand, as well as increase its refining capacity.
Unfortunately, judging by the current price increase, any improvement or normalization is, to say the least, illusory.
The crisis is so severe that Economy Minister and presidential candidate Sergio Massa warned on Sunday that Argentine oil manufacturers would not be able to export unless they increase fuel materials to deal with shortages in the country.
“If the fuel issue is not resolved by midnight on Tuesday, corporations will not be able to send export vessels from Wednesday,” Massa told reporters in Tucuman province. “The oil of the Argentines belongs first and foremost to the Argentines. “
Massa added that some corporations were clinging to bets that the government would devalue the official exchange rate after last week’s presidential election.
On Argentina’s farmland, manufacturers said diesel shortages are also showing signs of slowing, which is critical for the start of the planting season for late soybeans and corn, the country’s main profitable crops.
“It’s not absolutely normalized but there’s still a little bit more supply,” Jorge Chemes, president of Argentina’s Rural Confederations (CRA), told Reuters on Monday.
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“The most sensible thing is that you need dollars to pay for imports and the central bank doesn’t have any. And even when they import, refineries suffer losses by selling at the pump below the value they buy,” the source explained.
But rhetoric aside, there is an undeniable explanation for why the country’s crisis, almost all crises, are the same: government intervention. You see, in its infinite genius, the Argentine government has set a value of local oil at $56 a barrel, well below the foreign value, around $86, in an attempt to quell local inflation of about 140%. Not only does this distort the economic scenario for corporations importing goods from abroad, but it creates instant shortages, because you can have “cheap” fuel. and suffer ancestral shortages, or you can let values balance out in the market. . . and threaten a popular crisis.
Sitting between a rock and a hard place, Argentina’s biggest fuel manufacturers and refiners said in a statement on Monday that they had submitted to the government a plan to repair the entire source of fuel stations and increase inventories.
“We will use every conceivable strategy to expedite the unloading of ships with imported fuel, which as every year complements local production,” they said.
Local unions supported Massa’s position and threatened to call a strike starting Wednesday if the internal scenario was not resolved. They said crude oil production had reached a record high and that oil corporations were “opportunistic and petty. “
By Zerohedge. com
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