Expo Red 2023: Transforming YPF’s fuel retail network
Argentina’s biggest fuel retailer celebrated another edition of its trade fair dedicated exclusively for operators of its service station network. PetrolPlaza talked to exhibitors and retailers about the state of the industry amidst a decisive election year after a successful 2022.
Expo Red, the event organized by YPF’s Operators Association (AOYPF) held its third edition on April 12-13 at La Rural Exhibition Centre in Buenos Aires, Argentina. The trade fair gathered operators of over 1,600 service stations, the biggest fuel retail network in the country, as well as top suppliers from the region.
The event surpassed the previous edition’s attendance and showed the industry’s strength. Over 3,500 attendees met 90 exhibitors at the trade show, a result that reflects YPF’s efforts to build upon last year’s third sales record throughout its over 100 years of history.
In line with its success, and to continue increasing the reach of the expo, the company moved its venue to a more prominent location, La Rural. A most welcomed change among exhibitors such as ELAFLEX Latin America, whose Regional Director, Frank De Poli described it as an “incredible transformation.” “The space, the number of exhibitors and participants is exponentially higher than last year,” added De Poli.
Working towards the sector’s transition
Transformation sums up the event’s purpose this year. Leading companies of the local market alongside first-time exhibitors showcased their latest products to bolster the integration of convenience retail, sustainable solutions and digital services across the sector.
“YPF is keen to optimize fuel management and make service stations greener or at least more aware of the impact they have on the environment,” said Pablo Schaffer, Marketing Manager at Pump Control, an Argentine company that designs and manufactures fuel measurement and control equipment.
Exhibitors such as IMS, a developer of displays for fresh and processed food, stood out alongside other local players that are pushing the local industry forward while also having an international reach. Global companies were also present at the fair through their local subsidiaries, such as Fiserv, a leader in financial technology that is spearheading the sector’s digital transformation across the country.
“In most countries of Latin America the use of electronic payments has grown. Not only through the use of credit cards but also thanks to apps and some other methods such as e-commerce, in line with delivery platforms,” detailed Raúl Ithurburu, Retail Solutions Product Manager at Gilbarco Veeder-Root Latin America, as one of the trends discussed at the event.
Expo Red also shed light on the ambition from operators to diversify offering. With a network that covers the entire nation, operators are seeking opportunities to differentiate their sites with services both new and familiar to the customer. “There’s a lot of willingness to install self-service car washes now, even after the 90's boom of automatic washes that ended due to their lack of profitability and sustainability,” stated Victoria Cooper, General Manager of InWash, a self-service car wash brand that has been expanding across the country in recent years.
The future of YPF’s operations
This shift from growth to transformation coincides with YPF’s focus to prioritize the network’s sustenance over its expansion. As the President of the company, Pablo González, mentioned during his inaugural speech, the firm is yet to tackle the “15% increase in fuel demand in the country.”
The company’s representative also recalled its partnership with Petronas and several fuel investments relying on the completion of the Néstor Kirchner Gas Pipeline and Vaca Muerta. The company has recently advanced on both ends, with the gas pipeline scheduled to be operational by June 20th and increasing investments in Vaca Muerta. Both projects are key not only in achieving energy self-sufficiency for Argentina but to drive the industry forward and establish it as a potential energy exporter.
“YPF has almost doubled its investments in Vaca Muerta. As manufacturers of both downstream and upstream equipment, this kind of support drives all supplying companies,” explained Pablo Capuano, Commercial Manager at Bertotto Boglione, local and international supplier of storage solutions.
The country also faces presidential elections this year amidst an economic crisis, in which the energy sector may prove critical in overcoming. Potential new regulations are expected if the government changes, but retailers showed confidence in the sector’s strength going forward.
“An election process always brings with it an accumulation of new expectations and uncertainty for the future. In this particular case we know that there are many aspects that will have to be dealt with, such as both labour and commercial legislation,” anticipates Carlos Gold, Secretary of Institutional Affairs at CECHA, the Argentinean Fuel Retail Association.
Expo Red 2023 continued its goal to nourish the new mindset of a fuel retailer across the YPF network and boost relationships between operators and suppliers. Despite the country’s economic challenges, the sector’s strength allowed for a successful trade fair at a suitable venue for future editions.
