Cross-border fuel tourism from Paraguay leads to supply problems in Argentina

RIO DE JANEIRO, BRAZIL – “We can see it in our stations. They come with jerry cans for fuel because of the quality of our products and above all, because of the price, for them (foreigners) it is much more affordable, but this is not good for us. It is going to lead to a fuel shortage,” said with concern Faruk Jalaf, president of the Chamber of Service Stations and Related Industries of the Northeast region.

The Argentine entrepreneur explained that the price of fuel in Argentina has been frozen for over 6 months and will remain so until the end of the year due to elections in the country. He also said that service stations in Argentina have a minimum and limited quota of the product, for which reason they fear running out of fuel.

Jalaf also denounced that people come to Clorinda from Paraguay to fill gasoline drums at service stations and pointed out that there is no control by the Argentine authorities, while stating that limits on fuel sale cannot be imposed. He also fears potential fires at gas stations due to fuel supplied in jerrycans.

On social networks and border websites there are pictures and videos of Paraguayans in Clorinda buying Argentine fuel in 10-liter or larger capacity drums.

PRICES

Premium gasoline costs ARS 104.80 (US$1.05), while super gasoline costs ARS 90.40. Regular diesel is priced at ARS 84.90 and special diesel at ARS 99.90, according to surtidores.com.ar.

If the Argentine peso is exchanged at 44.50 per guarani, based on the exchange rates of four exchange houses in Paraguay, the prices of Argentine fuel in guarani would be 4,664 (US$0,67) for premium gasoline, 4,023 (super gasoline), 3,778 (regular diesel) and 4,446 (special diesel).

In the case of gasoline, due to the effect of the exchange rate, there is a variation of between almost 3,000 and 5,000 guaraníes cheaper per liter, while in the diesel fuel lines there is a difference of between 2,500 and 3,000 guaraníes less per liter.