Despite Global Oil Price Plunge, No Relief In Argentina As Gas Prices Rise And Choke An Already Troubled Economy

Argentine President Cristina Fernández de Kirchner. Courtesy of Presidency of the Nation of Argentina,

Despite a 40%-plunge in international oil prices, in Argentina the price of petrol is on the rise and remains the most expensive one in Latin America. Consumers complain the price hike has added to an already unaffordable cost of living. And the situation is getting worse for those who rely on gas to work.

Gasoline distributors claim the fuel pricing structure in the country is too complex, which makes it difficult to reduce the prices at the petrol stations. Opposition leaders, however, blame the government for keeping high the internal oil prices in order to benefit global energy giants like Chevron and British Petroleum. According to government officials, the contract signed between the national oil company YPF and Chevron has no hidden clauses and is crucial to attract key investments for the oil sector. But opposition leaders say these sorts of secret deals are like the ones that were awarded during the darkest neoliberal years in Argentina. Experts say Chevron and British Petroleum exploitation of the world’s second biggest shale oil and shale gas field in southern Argentina would be at serious risk if government adjusted the internal prices to the current ones at the international markets. Experts believe Argentineans must resign themselves and expect soaring prices in the coming months.