Argentina faces gasoline shortage as newest chapter of the currency crisis

The latest signal of the economic crisis in Argentina is the long queues forming at local gas stations for fuel. The fuel shortage at these establishments is a direct result of the scarcity of dollars in the country, causing tanker ships from various companies to remain idle in Argentine ports, awaiting payment before releasing their products into the market.

According to reports from Bloomberg, the Central Bank of the Argentine Republic (BCRA) is running out of dollars to pay importers. Meanwhile, YPF, the state-owned oil and gas company, has three tanker ships waiting with gasoline and diesel, but they cannot unload the fuel until foreign supplier companies such as BP and Gunvor are paid. Two of these ships are anchored in the Rio de la Plata.

Economist Matías Vernengo, a professor at Bucknell University in Pennsylvania, USA, and former senior research manager at the Argentine Central Bank, estimates that Argentina’s net dollar reserves are negative, amounting to approximately $7 billion.

The electoral uncertainty complicates matters even more for Argentine drivers. In the lead-up to the first round of the presidential elections held last Sunday (October 22), some gas stations halted sales due to concerns about a substantial currency devaluation. The runoff elections are scheduled for November 19, with the presidential race featuring the government candidate and Minister of Economy, Sergio Massa, and the ultra-liberal candidate, Javier Milei.

Source: Metropoles

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