Oil Giant Repsol-YPF came on stage to reject accusations of fuel overpricing and market manipulation made by the national government, and considered the investigation to be launched as “totally unjustified.”
In a press release, the company stated: “YPF rejects all reports and accusations made last Monday by officials of the national government. Likewise, the company is open to give all necessary explanations that government authorities may require.”
Furthermore, the corporate communiqué remarks that “Average bulk prices for bus companies at a national level are in the same tune with the ones established by the national government and in total comply with the gasoil subsidies.”
The government is to launch an investigation via the National Competition Protection Commission (CNDC) to determine whether Argentina’s five major oil companies — YPF, Esso, Shell, Petrobras and Oil — operating in the market “abused their dominant position” to sell fuel in bulk to freight companies and public transport companies at a more expensive price than is commonly found at the pump.
The government officials said that the average overpricing which has been detected around the country is 8.4 percent above the norm, but in some cases it is more than 30 percent above average when fuel is sold in bulk to suppliers. De Vido also warned that the distortion could be worth 3,500 million pesos annually.
Repsol YPF’s main shareholder is the Eskenazi family (which is close to the government), Esso is owned by Exxon, Shell is owned by Royal Dutch Shell, Petrobras Brasil controls Petrobras Argentina, while Oil is owned by Cristobal López, the gambling and casino tycoon.
Source: Buenos Aires Herald