Argentine Oil Companies Unveil Action Plan to Normalize Fuel Supply Amid Domestic Shortages

Argentina's leading refinery operators presented a comprehensive action plan to the government on Monday, aiming to restore regular fuel supply in the domestic market following significant recent shortages. The plan, discussed in a meeting with Argentine Energy Secretary Flavia Royón, was jointly developed by YPF (controlled by the Argentine state), the American company Axion Energy, the Swiss company Trafigura, and Raízen (a joint venture between Shell and Grupo Cosan).

Pipe Laying Ship Used in the Oil and Gas Industry Docked at Port

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Action Plan for Supply Reinforcement

In a joint statement, these four oil companies noted that their action plan is designed to reinforce "full supply" at service station networks and to "recover the operational stock levels across the entire chain to return to normalcy."

They assured that all measures had been taken to accelerate the offloading of ships carrying imported fuel, supplementing local production.

Recent Ship Offloading

In this regard, they specified that during the last weekend, three ships carrying gasoline and diesel were offloaded, and two more are expected to be offloaded between Monday and Tuesday.

"The arrival of three more ships is anticipated, which will normalize the situation of strategic fuel stocks," the oil companies indicated.

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Enhanced Distribution Scheme

They also reported that a unique distribution scheme to gas stations has been established, allowing an increase of approximately 10 to 15% in the usual fuel offer "until reaching operational normality."

They affirmed that, following the measures implemented since the weekend, there has been an "attenuation" in demand at the stations, where an "entirely exceptional peak in consumption" was recorded, and that "demand levels are converging to usual volumes, a situation that will help the system to recover more quickly."

Argentina's Minister of Economy and official presidential candidate, Sergio Massa, accused oil-producing companies on Monday of withholding crude oil and not sending it to refineries, preferring to prioritize exports over domestic supply.

Call for Supply Normalization

In televised statements, Massa claimed there was "stock retention" by oil-producing companies such as Vista, Pan American Energy (PAE), and Tecpetrol, which did not sell to YPF, the country's largest fuel refiner because they preferred to export.

"When they prefer to export rather than supply Argentines, we have the responsibility to stand firm," said Massa, who confirmed that if the supply does not normalize by midnight this Tuesday, "no more export ships" of crude will leave.

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