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Petrol hike rollback takes effect in Argentina

Posted / Last update: 23-08-2010

The government has made the resolution issued last week that orders a petrol hike rollback official as it was published in the Official Gazette (resolution N° 295/2010). The resolution was signed by the Domestic Trade Secretariat, led by Guillermo Moreno, and warns those who raised prices after July 31 must roll them back to that date. According to official sources, more than 50 inspectors were sent out to enforce the order

The local branch of Royal/Dutch Shell -the only company to raise prices after July 31- said it would attempt to oppose it as it has lately set petrol hikes of $0.07 cents for regular gas and 0.06 for its gasoil.

Shell chairman Juan José Aranguren said on a radio interview that it was remarkable the administration "threatens" petrol stations when there is only a week to go before the powers Congress has been delegating for over a century expire.

Aranguren also questioned the application of the law, arguing that "there is no emergency" that may justify it and contrary to what almost all petrol stations say, he added, it is petrol stations which are setting fuel prices.

The heated relation between the Kirchnerite, mostly Moreno and Néstor Kirchner, and Shell has become a classic (i.e: the Dutch company is never invited to any meeting the Domestic Trade Secretariat organizes). The tense relation reached its apex when Néstor Kirchner being president, called the population to stop buying from Shell and punished the company with monetary sanctions in 2006 and 2007.

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