July 21, 2024

Brighton Journal

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The government warns that prices will double if Miley wins

The government warns that prices will double if Miley wins

The fuel price freeze ends on October 31A “Father Agreement” reached by the Minister of Economy, Sergio Massa, along with oil and refining companies, post-STEP demonetisation. When asked how it would proceed in the face of shortage of reserves in some parts of the country, the Energy Secretary said, Flavia RyanHe expected: “It depends on what happens on Sunday.”

The thing is, if La Libertad’s candidate advances, Javier MRoyan hoped that this would mean that a first-round win might even be the price of gasoline. “double”, due to the implementation of dollarization and integration of local market prices with export prices, which has reached a record today as a result of the conflict in the Middle East. On the other hand, if Massa enters a run-off and still has a chance of becoming president, they will again call on companies, adjusted for inflation, “taking into account purchasing power”. ” ”.

Termination of contract

On Monday, August 14, the day after the primary elections, the central bank devalued and increased the official exchange rate by 22%. That week, Massa closed price contracts with oil companies to avoid a sharp rise in inflation at the same time that the fair price period had ended. They agreed to a 12.5% ​​hike and then froze prices until October 31.

However, according to private studies conducted by the Consortium of Hydrocarbon Businesses (cache) In these 3 months there has been an increase in some service stations in the context of fuel shortage in some parts of the country. Although the Ministry of Energy was informed, it did not impose any penalty as the agreement was a “gentleman’s agreement” and contained nothing in writing. Also, they are holding talks for continuous supply in the domestic market.

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Looking forward to October 31st, Ryan confirmed it An agreement reached in August is coming to an end. When asked about future prices at the pumps, he replied: “It depends on what happens on Sunday.”

The future according to the election

Royan warned that petrol pIf Milei wins the first round this Sunday, the price could rise sharply: “Opposition proposes to align domestic fuel market prices with international prices. But they didn’t get down to earth what that meant. They should consider three factors. First, they all talk about sudden devaluation. Libertarians talk about dollarization. Well, what exchange rate? At $1000? Hence, it affects the cost of fuel.

And the energy secretary added: “The other effect is that prices have risen to around US$90 per barrel internationally, and there is a lot of uncertainty due to the global environment of conflict in Israel and the Middle East. On the other hand, the burden of fuel taxes is frozen. so, Add up all these elements, double the cost of fuel, increase by 150%, we need to tell people clearly what we are talking about.

When asked how much a liter of petrol would cost if Miley’s energy plan was used, Ryan replied that it depends on the exchange rate at which dollarization is carried out. So unlike the Transport Ministry, which revealed how much public transport would cost without subsidies, Energy did not want to give a specific number. “To define what that would be worth, we have to look at what exchange rate dollarization is done without dollars,” the engineer said.

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On the other hand, Ambito suggested what the future holds for fuel prices if Massa continues to race for the second round. “As long as Sergio Massa is in charge, he will continue his policy, which is a price path in line with the reality of inflation and the salary power of Argentines”Energy Secretary assured.

Regarding the opposition’s proposal to close the price gap between a barrel sold domestically and a barrel exported, Ryan opined: “The resources are in Argentina and the associated costs are in pesos. Therefore, the prices of fuel in the domestic market should be in touch with the local reality.