Page 5 - LatAmOil Week 22 2022

LatAmOil COMMENTARY LatAmOil

His warning raised alarm in Buenos Aires. Yerba diesel shortages. Here too, the supply disrup-
mate, which is used to brew a type of popular tions appear to be regional in nature.
herbal beverage, is an important cash crop in Armin Dorgathen, the president of state-
South America. Argentina is the world’s largest owned YPFB, confirmed at a press briefing in
producer of this commodity, and Juan Man- late May that shortfalls were occurring in the
zur, the head of President Alberto Fernandez’s western part of the country. He stressed, though,
cabinet, acknowledged at the governors’ meet- that the problems were confined to these regions
ing that the national government had not put and said that conditions were “normal” in the
enough fuel into the national reserves to ensure rest of Bolivia, asking drivers to remain calm and
supplies for the harvest. avoid panic buying.
Manzur pledged to take action on this front, “It is important to transmit to the popula-
but he stopped short of endorsing the propos- tion that we are introducing a greater amount
als put forward by the governors – namely, the of additional product so that there is no spec-
establishment of a regional fuel reserve and ulation in this regard,” he was quoted as saying
procurement system. Nevertheless, the central by Mercopress. “Let people know that we have
government did say on June 1 that it was taking the product, the product is arriving and let’s not
several steps to increase diesel supplies across overbuy, because we don’t have the product in Not so long
the country. stock either. It arrives on the day and is con-
On the one hand, it reported that it was sumed on the [same] day.” ago, Argentina
working to facilitate efforts to bring producers Dorgathen also stressed that YPFB was
together to ensure crude supplies to Refinor, the taking immediate steps to alleviate shortages was helping US
operator of a 25,000 barrel per day (bpd) refin- in western Bolivia. The NOC has already dis-
ery in Campo Duran in Salta Province. On the patched 76 tanker trucks to Arica, a port in refiners fill the
other hand, it stated that it was strengthening northern Chile, where they can load up with die- gaps resulting
border controls with the aim of discouraging sel, he said. These trucks will be able to deliver a
drivers from neighbouring countries from com- total of 2.5mn litres of fuel to western cities such from the ban
ing into Argentina, where domestic fuel prices as La Paz and Oruro that have been running low
are capped, to fill their tanks at lower prices. on supplies, he explained. Delivery volumes on Russian oil
(This practice has contributed to fuel shortages will rise in early June, after YPFB completes a imports
in areas near the border, it said.) new marine terminal in Arica. This facility will
Meanwhile, the government also said it had be capable of handling ships that carry enough
ordered domestic refineries to boost diesel fuel to cover four or five days of consumption,
imports by up to 50% in June and July in order he said.
to ensure that rising demand could be met. Going forward, he added, YPFB will be
According to anonymous sources cited by Mer- working to increase the volume of oil imported
copress, the national oil company (NOC) will be into Bolivia for refining.
responsible for implementing this plan and will The company expects to take delivery of
fulfil the requirements by raising the number about 30,000 barrels of crude before the end of
of diesel cargoes imported from two to three in May, he said.
June and from three to four in July. Other refin- As of press time, it was not clear whether
ers will also increase imports in June, the sources these measures had served to calm concerns
said, without elaborating. about diesel shortages. Bolivian transport com-
panies have been reporting that drivers are
Bolivia queuing up at filling stations across the country,
Meanwhile across Argentina’s northern waiting for hours and sometimes finding that
border, Bolivia has also been experiencing diesel is unavailable. ™

YPFB Transporte trucks lining up in Arica in late May to load diesel (Photo: Gente.bo)

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