Argentina’s fuel market to open

Argentina’s fuel retailers will be able to set their own fuel prices starting in August, international media reported Monday.

The opening of the market is expected to drive more investment in the domestic sector and allow for lower fuel prices, an anonymous source at the Ministry of Energy and Mining told Reuters.

In early May, YPF, Shell and Pan American Energy entered into an agreement with the ministry to put a hold on fuel prices through June in order to bring relief to Argentinians, who have also been feeling the pressure of rising utilities rates and high inflation.

The freeze placed the refiners in a difficult situation, as they have been grappling with increasing oil prices and import costs. As such, a separate deal was struck with then-energy minister Juan José Aranguren to allow for monthly fuel price increases of 3% starting July 1.

However, over the weekend, newly appointed Minister Javier Iguacel reportedly struck a new deal allowing the fuel retailers to raise prices by 5%. The adjustment was deemed necessary due to the recent devaluation of the Argentine peso against the US dollar, local newspaper El Cronista reported.