Argentina says energy firms must put price cap on jet fuel

Victoria
By Victoria March 13, 2012 22:43

Argentina says energy firms must put price cap on jet fuel

Argentina ordered oil companies YPF, Royal Dutch Shell and Esso to put a price cap on jet fuel charged to airlines that own aircraft registered in the country, the state news agency said yesterday. The decision is seen benefiting LAN Argentina, a branch of Chile’s LAN Airlines and state-run Argentine airline Aerolineas Argentinas, which accused the three energy firms of overcharging for jet fuel last month.
“The price of a liter of JP1 jet fuel must not exceed ‘super’ gasoline (used by cars) by more than 2.7% from the price charged at a gas station nearest to the airport where it is loaded,” a statement read. The measure by Argentina’s domestic commerce secretariat is based on a report by the country’s antitrust commission. The government has put pressure on YPF, the local unit of Spain’s Repsol, as part of a drive to get companies to increase investment in energy output. YPF is the main jet fuel supplier in Argentina
The antitrust commission said oil firms were reaping “an extraordinary gain” by charging jet fuel 47% higher than super gasoline, when in the United States the difference is no more than 2.1%.
President Cristina Fernandez has slammed energy companies for charging global rates for the fuel. “Nearly all the JP1 (jet fuel) is produced here, with the exception of a very small amount that is imported, which I think they do to justify charging us the international price,” Fernandez said in a speech last month. Esso was purchased last year by Pan American Energy, which is controlled by BP Plc .

Victoria
By Victoria March 13, 2012 22:43
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