The Union of Nafta Sellers (Unvenu) asked the Executive Branch to postpone a possible increase in fuel prices in June until “the stock is restored” and thus prevent the service stations from generating “financial problems.”
“We urge Ancap to take the necessary measures to restore the normal supply of fuel urgently and we ask the Executive Power that if it decides to increase the price, it be delayed for a few days until we can rebuild the fuel stock, to prevent financial problems from continuing to arise at service stations,” the statement said.
Among the reasons, the group points out that Ancap was unable to “satisfy” the demand of its customers this weekend and, as they foresee, it will not be able to do so this Monday. In turn, next Tuesday a strike of workers who oppose the increase is planned, so the company will not supply fuel either.
It is a “practice that ‘coincidentally’ is becoming common in Ancap prior to an increase in fuel prices,” the union stresses.
“As usual in these cases, while a price increase is being discussed, the demand from service station customers (motorists, producers, carriers, etc.) increases significantly,” he adds.
The Executive Branch will resolve on Tuesday what it will do with fuel rates in June. If there was any (minimal) chance that the prices would not change, the possibility vanished on Saturday when the President of the Republic Luis Lacalle Pou declared at a press conference that Ancap’s back “is finished” and that it would not be “prudent” to continue stressing the finances of the oil entity with a price below what the international market photo shows today.
On Friday, the latest Ursea Import Parity Price (PPI) report was released, which showed a new upward correction for rates in Uruguay. That is one of the inputs that the Executive Power places on top of the table to define what decision it makes.
