Argentina’s President, Cristina Fernandez de Kirchner, has put pressure on Argentina’s oil firms to boost production in the country, saying they are responsible for a doubling of fuel imports, even as her Government investigates their downstream activities and accuses them of market abuse.
In a speech on returning from medical leave last week, Fernandez noted that fuel imports in 2011, at $9.4bn, were twice the level of a year ago and issued a warning that the subsoil of Argentina belongs to the nation. “It’s good they take notice of that and re-invest in the country,” she added.
Fernandez’s comments follow an investigation launched by National Commission for the Defence of Competition (CNDC) into YPF, Shell, Petrobras, Esso and Argentina Oil. The Government, which initiated the prove, alleges that the five firms abused their dominant position to increase wholesale prices for public transport firms. The CNDC has since ordered the five companies to sell diesel for public transport at the same price as they charge at the pump. “The measure was adopted to protect the economic interests of the population at large and particularly those who depend to a greater extent on public transport,” said the agency.
Separately, a Buenos Aires daily reported that officials discussed a takeover of YPF. Pagina/12, which did not name its sources, claimed that officials, lawmakers and oil industry specialists discussed nationalising the firm bought by Repsol in 1999. Neither the Government nor YPF have commented officially on the speculation.
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