Saturday , July 2 2022

They guarantee the government expects a decline in fuel – Diario La Provincia SJ



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The Executive Power began a cautious, but decisive negotiation with oil companies. The aim is to achieve a 10% decline in fuel prices, at least in December.

"There is an update of the carbon tax in December, but we believe that oil companies have already reached the import-parity (the price of the import parity corresponding to the yield of local production) and that these amounts have to be reduced now. "Oil companies apply for prime (refining) imports, if import prices are also taken into account, then what makes sense is reduced."

At the Executive Branch, they claim they tolerate the rise in international oil prices and reached US $ 85 in early October. However, this situation has changed the scenario and a decrease of US $ 62 per barrel in the case of Brent.

In executive power, they will raise these arguments with YPF officials, but they can also take them to other main players in the market, Axion and Shell. In any case, official conviction is that the YPF has a market leadership as important as it drives the market.

In oil companies, they do not comment on the position proposed by the Executive Power. For example, they agree that the export price in parity parity is close to or reaching the current price level. However, they do not reassemble their revenues at the devaluation rate.

In October, the naphtha bureau fell by 6% and was more prominent in the two-digit premiums.

Source: Los Andes

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