By La Verdad Group Editorial Staff
Pedro Cascales, president of CEGLA (Argentine Liquefied Gas Business Chamber) spoke with Grupo La Verdad about the current situation in the sector and the values of the bottles and products they market in the context of the arrival of winter and the increase in demand for homes due to the winter seasonality. In that sense, he explained that “historically we have been behind on prices. In January, with the change of government, there was a significant devaluation that changed the raw material cost system, that is, what oil companies charge for liquefied gas. There was a significant jump, and from then until now there have been no movements in prices. published by the Ministry of Energy.
«The price in the province of Buenos Aires to the consumer is 7,500 pesos for a 10 kilo bottle at the door of an authorized official distributor, although when purchased from a distributor that is not official, that last section is not regulated and can vary. In any case, what the Ministry of Energy publishes are maximum reference prices, it is not a fixed limit that cannot change,” he later detailed and stated: “it is not the price that we, the distributors who are in the middle of the chain, charge. of marketing. “We sell to the distributor for 2,579 pesos plus taxes and he is the one who then takes it to the stores.”
«If you go to the door of an official distributor, the bottle is 7,500 pesos, then outside the official chains the price is different. In any case, we are asking that the prices be updated due to the inflation that occurred in these months, which was in the order of 60 or 65%, because our costs of salary, transportation and fuel to move the trucks have increased,” Cascales indicated, in addition. .
Meanwhile, the businessman stated that “the update is necessary. In fact, a week ago the Ministry of Energy published a resolution saying that from June 1 to November 30, all hydrocarbon prices must be released gradually to reach that date with a release at all stages of the chain.
“In our case, there are more than 25 gas fractionators and thousands of distributors in the country, there is very broad competition, which means that if you don’t find the price that suits you, you can make a few blocks and get other values,” he said. and stated: «this is established by law 26020 that governs the activity and is what happens in the world, where there is competition. “Here for many years the market was intervened by setting prices and quantities.”
STATE REGULATION
At this point, Cascales explained to Grupo La Verdad that the liquefied gas sector is a sector of public interest, but is not considered a public service. “Here the consumer can choose to buy from whoever they want,” he stated.
«There are provinces, for example, where the price does not reach those established by the state, it is sold for less because there is a lot of competition. It is not an Argentine invention, in most countries the system works with supply and demand and when you restrict as has happened, what has been achieved is disinvestment because companies begin to lack profitability and that lack of profitability translates in fewer companies,” he said later.
«Liquefied petroleum gas, which is butane and propane, is one of the few sources of energy where Argentina produces more than it consumes, exporting almost 40% of its production. However, we punish this product, we set prices, we beat it with a stick and we discourage investment. “If we had continued with that policy, we would end up importing liquefied petroleum gas, as happens to Venezuela, which has resources, but no energy,” he also explained.
«You cannot force anyone to work below their costs because that way there would be no more companies, they would all melt down. That’s kind of what happens. In Latin America there is a lot of firewood consumption because it is cheaper than liquefied gas and in Argentina with 10,000 pesos you can buy a bottle. That is to say that when prices are set that are not real, the market is distorted,” concluded the businessman.
“Things have to seek a normal balance, pay what it costs to produce and that will produce a virtuous circle of greater investment and greater supply,” he concluded.
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