MercoPress. South Atlantic News Agency

Fuel supply in Argentine getting back to normal pending price increase

“All of a sudden the trucks appeared,” Massa said in an ironical tone

Fuel supply in Argentina is slowly getting back to normal as an increase in the price at pumps has been admitted onto a negotiating table, it was reported in Buenos Aires. After shortages throughout the weekend, the Government acquiesced to an increase in the price of gasoline.

“The actions implemented in the last days have already started to give results and the service stations all over the country confirm that the volumes of fuel they are receiving have increased,” major refineries YPF, Trafigura (Puma), Raizen (Shell), and Axion said through a statement as the plan presented by the oil companies was put into action.

After stabilizing supply, authorities and oil companies were negotiating the price increase, which would range between 5% and 10%, according to local media. Fuels went up by 60% yearly while inflation is over 120%.

“They want to force a 40% increase and I will not allow it,” Economy Minister and presidential candidate Sergio Massa said after a meeting with industrialists of the UIA (Argentine Industrial Union).

He also accused the oil companies of speculating with the supply to force an increase as the price freeze agreed upon in August is coming to an end.

A new meeting is to be held Wednesday to decide what to do as of November.

“All of a sudden the trucks appeared. Even if they try with some speculative maneuver to force a 40% increase in fuel, I, as Minister, will not allow it,” Massa told reporters.

“If by this speculative maneuver, they intend to increase the volume of exports because they have a preferential exchange rate, I will choose between 5 oil companies and 45 million Argentines, I will choose the 45 million,” he insisted.