Argentina’s fuel retailers demand oil companies to respect profit margins
Oscar Diaz, president of the Confederation of Entities of the Hydrocarbon Commerce and Related of the Argentine Republic, said that his organizations has made several presentations before the different oil companies in the country asking them to “meet accords in the sense that the profitability margin of service stations will not be altered,” the organization said late January in a statement.
The situation originated when the Argentine government, pressured by international declines in crude prices, decided to reduce the cost of gasoline and diesel by 5% starting January 1, the organization said.
Even as the government had said that profit margins of refiners and fuel stations would not be affected by the price decline, some fuel retailers mistrust oil companies to respect that.
The Argentina fuel retailer organization said that it did not want to start the year with frictions but that there “was not much time for waiting” as fuel retail station owners prepare for conversations with unions of workers of fuel stations who are seeking wage increases even in this environment in which profitability is threatened, the organization said.
