Argentina gov’t claims imported diesel is on the way in response to truckers

The government of Argentina announced on Wednesday, June 29, that it took several measures to normalize the supply of diesel in response to multiple protests led by truckers over the lack of fuel, informed “Associated Press.” Groups linked to the transport sector warned that much of the country is currently facing supply problems.

The Casa Rosada chief of staff, Juan Manzur, stated that a ministerial delegation discussed the lack of diesel and that five vessels loaded with diesel are on their way “to restore the supply of fuel.” Besides, Argentina’s four refineries are operating at total capacity.

The chief of staff also mentioned the increase of biodiesel in the blend of diesel oil, which went from 5% to 12.5% starting from July 1st. Manzur also announced the temporary suspension of taxes on imports of the product.

The announcement followed others made by the government weeks ago that did not come to fruition, which added to the irritation of truck drivers. Security Minister Aníbal Fernández himself admitted before entering the cabinet meeting that the solution to the shortage problem “has been postponed because the purchase (of fuel) should have started earlier… but the government will resolve it in days.”

Argentina produces diesel, but not enough to meet national demand; thus, it depends on imports. Such a scenario develops amid rising world prices caused largely by Russia’s war against Ukraine.

A week ago, several transportation professionals organized in unions entered on strike, while public demonstrations have been taking place since April in protest over the lack of diesel. In addition, workers demand revising tariffs for transporting grain and other products.

On Tuesday (28), hundreds of drivers tried to take their trucks to downtown Buenos Aires to stage a protest at the Obelisk — one of the capital’s best-known spots. The police prevented them from reaching the downtown area.

In Argentina, problems with access to diesel occur in 23 of the country’s 24 districts, according to the latest study by the Argentine Federation of Business Entities for Road Transport.

One of the reasons for the shortage, according to analysts, is that oil companies do not consider it profitable to import diesel because they cannot sell it at the price they pay since the government prevents all of its value from being passed on to the market in the current inflationary environment.

Source: Valor Econômico

To read the full original article, please go to: https://valor.globo.com/mundo/noticia/2022/06/29/sob-pressao-de-caminhoneiros-governo-da-argentina-diz-que-diesel-importado-esta-a-caminho.ghtml

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