Executive Power began to hold down but tough negotiations with oil companies. The goal is to achieve a 10% reduction in fuel prices, at least for the "commissions" of December.
"The carbon dioxide tax is updated in December, but we believe that oil companies have already reached the import parity (the price of import parity against which the local output is measured) and now they have to reduce the quantities by 10 percent, at least premium (naphtha)" in detail from Rosada. "Oil companies rely on commissions (for processing) if the price of imports is what they consider, the logical thing is that they are down."
In the management team, they claim that they are in favor of rising international oil prices, which was $ 85 at the beginning of October. But now the changed scenario and crude oil has dropped in the area of $ 62 a barrel of Brent, a variety that is taken into account in the country.
In the conclusion, they state these arguments for the YPF authorities, but they can also export them to Axion and Shell, other major market participants. In any case, the official conviction is that YPF has such a significant market leadership that it will pull the market.
In oil companies, they still do not comment on their position suggested by Executive Power. They acknowledge that parity of export is close to or achieved, for example, at current price levels. However, they point out that they did not combine their income at a devaluation rate.
In October, the amount of naphtha dropped by 6%, and each one was stronger in commissions with two digits.
Source: Los Andes