Fuel refiners report heavy losses

They argue that they did not transfer all the devaluation to the prices

Despite a 70% increase in the price of gasoline, the refining and fuel marketing market did not have a positive economic year either. According to the calculations of the industry, the market – which includes

YPF

, Axion and

Shell

as major players – suffered a loss of $ 1,800 million. The explanation, they say, is the megaevaluation that affected the rise in

exchange rate

more than 120%, in a sector where 90% of its costs are dollarized.

"The loss has not been as great since 2002, when it left convertibility," an oil company executive said yesterday. "From May to now, the sector has lost money because it bought the crude at a price that could never be transferred thereafter.
full at the rate, "he added.

When badyzing the historical series of devaluations, it usually takes three months to recover a devaluation between 20 and 25%, they said in the sector. This year, 14 price increases were needed to partially achieve splicing with costs. Nevertheless, in the sector, they comment on the lobby the government would have made on YPF – market leader with 60% – to keep prices as low as possible.

Higher prices also had an impact on demand for naphtha, down 8% from September. In November, oil companies expected a decline in sales of 4% naphtha and 8% diesel. However, the premium has collapsed to 20%. "A lot of customers have gone great," they said on the market.

In 2019, the oil companies hope to advance a negotiation involving gas stations: the system
full service. "We have 20 people per station, it's a significant labor cost that adds to the cost of fuel.
downstream To see these things, "said a company executive, the idea would be to replicate the negotiating table that the government established in Vaca Muerta with the unions." It would require a mechanism that allows some stations to do the same user, as in the United States, "he added.

On the other hand, for the next year, refiners plan their activities with a price of a barrel of oil between 70 and 75 USD, much more than the 60 USD which closed yesterday the price of Brent. The bilateral meeting with Saudi Arabia's Prince Mohammed bin Salman and the President of Russia Vladimir Putin will serve as a conference room for the OPEC meeting next week in Vienna. He expects a reduction in production.