Gasoline Shortage in Argentina: No Dollars
Gasoline is in short supply in Argentina due to the inability to pay for fuel shipments.
As the gasoline shortage worsens in Argentina, Argentine drivers are facing long queues at gas stations, and some stations are closed.
The gasoline shortage in Argentina is a result of the National Government’s lack of U.S. dollars, leaving ships waiting at sea to import fuel.
Many scenes resembling those seen in Venezuela in recent years have recently appeared in Argentina, with cars circling the block trying to refuel at the stations.
Jorge Ferro, a 42-year-old consultant from Buenos Aires, tried to fill up his tank on Wednesday at an Axion gas station in the affluent Recoleta neighborhood, but the employees told him they had no “regular” gasoline and could only offer him 4,000 pesos (US$11) worth of premium gasoline.
“When I told them I would go to another station, they informed me that all nearby gas stations were closed,” Ferro said in a phone interview.
The growing lines at gas pumps and the dimly lit gas stations are tangible signs of an out-of-control fiscal crisis, and as gasoline becomes scarce in Argentina, it impacts the ongoing campaign for the second round of elections.
Argentina’s central bank is running out of U.S. dollars to pay importers, with inflation nearing 140% and a looming recession.
Gasoline Shortage in Argentina: ¿?
The state-owned oil company YPF has three tanker ships waiting with gasoline and diesel for import, but it cannot unload the fuel until foreign suppliers BP Plc. and Gunvor are paid, according to two individuals with direct knowledge.
YPF and Gunvor declined to comment, while BP Plc did not respond to a request for comments.
Two of the three ships, named Pacific Blue and NCC Nasma, are anchored in the Río de la Plata, closer to the coast of Uruguay, according to data compiled by Bloomberg.
YPF imported 6% of its gasoline for cars in the second quarter of this year, according to its most recent earnings call.
Electoral uncertainty is another major factor contributing to the issues faced by motorists. Economy Minister Sergio Massa will face outsider Javier Milei in the second round on November 19. Even after the elections, some gas stations report being out of fuel.
The shortage of U.S. dollars in Argentina is preventing YPF from paying for gasoline imports.
The delayed shipment amounts to 120,000 cubic meters, which represents 7% of the country’s monthly gasoline sales or about US$150 million, according to a source.
Argentina lacks access to international capital and is struggling to meet a $44 billion agreement with the International Monetary Fund, its primary source of funding.
It’s worth noting that Argentina imports 32% of its fuel: 20% of its diesel and 12% of its regular gasoline.
Gasoline shortages are particularly acute in the past week, especially in provinces far from the country’s capital.
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