Salyn Buzarquis, national senator for the PLRA, pointed out that the price of fuel depends on the international price. However, she affirms that the Government can apply palliative measures to mitigate the impact on the population.
“The government cannot say that it cannot do anything. When the international price rises, the price of fuel automatically rises. However, when the price of oil goes down, the price never goes down,” he questioned.
FREE MARKET
Some analysts say that prices are governed by the concept called “free market” (governed by supply and demand). Applying this concept to the geopolitical situation, this is the result; the war between Russia and Ukraine generated sanctions to the first nation. One of them is the embargo of part of the production and the prohibition of its being acquired in Western Europe.
As Russia is the second largest oil exporter in the world, this causes supply to decrease and as demand remains the same, it causes prices to skyrocket.
For Buzarquis, the concept of “free market” cannot be applied since there are not many emblems. He stated that what is happening in our country is actually an oligopoly (a group of companies operate as a block acting as if it were a monopoly).
“In practice they regulate the market. The Treasury and the State do nothing. Where is Conacom (National Competition Commission) and Sedeco (Secretariat for the Defense of Consumers and Users)? ”, She questioned.
The legislator regretted that a few days ago the price of crude oil fell. However, this did not generate any impact on local prices. Unlike when it happens in the opposite direction, where the increases are almost automatic.
“Even the smallest emblem has reserves for 60 days. Petropar has 90 days. That is, they can last that period of time with the previous price. Citizens must be defended. You have to see how much their deposit is and how much they bought, ”she concluded.
FERREIRA
Amilcar Ferreira, an economist, said for his part that the problem is not that simple. He argued that Paraguay is a net importing country, so the business is completely free (prices cannot be regulated).
“The most the State can do is, through Petropar, buy the cheapest thing it can and make it available. Emblems are free to sell at whatever price they want. If the other emblems sell high, Petropar can sell cheaper and through competition force the others to lower their prices”, he explained.
