Page 12 - LatAmOil Week 12 2022

LatAmOil PARAGUAY LatAmOil

Petroecuador is currently producing around 400,000 bpd of oil (Image: Petropar)

Petropar cuts motor fuel prices

amidst growing discontent

PETRÓLEOS Paraguayos (Petropar), the state- participated in street protests calling on Asun-
run petroleum product concern of Paraguay, cion to intervene.
reduced motor fuel prices earlier this week fol- The situation appears to have reached a tip-
lowing widespread complaints from truck driv- ping point last week, and members of Paraguay’s
ers and other consumers. Senate met with government officials on March
Petropar unveiled the revised price schedule 18 to discuss proposals for the establishment of
last weekend and then introduced the new rates a stabilisation fund capable of compensating for
on March 21. It cut the price of 93-octane gas- the cost of imposing a ceiling on domestic motor
oline by PYG300 ($0.043) per litre to PYG6,910 fuel prices. However, the outcome of these talks
($0.99) per litre and the price of Type III die- was not immediately clear. Senators reportedly
sel by PYG500 ($0.072) per litre to PYG6,050 favoured the idea of setting up the fund but
($0.87) per litre. nixed the idea of taking out bank loans to cover
The state-controlled company has been its costs.
widely criticised for authorising price hikes in As such, Paraguay’s government is investi-
late February, despite having pledged earlier that gating other avenues for financing the meas-
rates would remain the same at least until the ure, such as the elimination of fuel quotas for
end of the month. government agencies and officials, as well as a
The increases led truckers to go on strike temporary two-month increase in the selective
and start blockading roads, saying they would consumption tax (ISC) on tobacco and fuel not
not let normal traffic resume unless the gov- sold by Petropar. Asuncion does not propose
ernment offered more support. They also saw to create any new taxes, though it may seek to
some individual drivers resort to crossing the improve collection rates for and compliance
border into Argentina, where subsidies keep with existing taxes, according to Deputy Econ-
prices artificially low, to buy fuel, while others omy Minister Ivan Haas. ™

ECUADOR
Bermeo says Ecuador may consider carbon

emissions reduction in upcoming tender

ECUADOR’S Energy Minister Juan Carlos on March 21, Ecuador may give extra consider-
Bermeo has said that Quito may take its carbon ation to offers from investors that offer access to
emissions reduction goals into account when technologies that help shrink the country’s car-
selecting the winners of upcoming tenders for bon footprint. “I am in favour of putting a rating
six onshore oil blocks. score on the company that offers me the best
More specifically, Bermeo told Argus Media technology to avoid emissions,” he explained.

P12 www. NEWSBASE .com Week 12 24•March•2022