Through Joint Resolution 1/2022, issued by the Ministries of Agriculture and Productive Development, the Government extended the trust with the producers of oil.
This, according to the Executive, so that consumers can buy the oil at more favorable prices, but this decision has been highly questioned by the oil companies, who would not be in favor of the measure and assure that there is a delay in the prices of this product.
“The Government today published the rule that regulates the oil trust. Sets the conditions for settlors and trustees. CIARA does not participate”, expressed on its Twitter account the Chamber of the Oil Industry of the Argentine Republic (CIARA), who also indicated that the prices of oil they are way below.
Despite this, the Government indicated that the project has met the objectives set, favoring the domestic market, which is why the decision was made to extend the initiative. Consequently, the trust will be maintained until January 31, 2023.
The rates that will be subsidized include the oils refined soy, sunflower and its derivatives, in containers of up to five liters. With this, the annual contribution will be up to US$ 190 million, for which the trust will be estimated based on the Sworn Declarations of Sale Abroad.
The Government also indicated that the compensation will be equivalent to 29 million liters of oil per month, and that thanks to the success of this initiative, a trust could also be implemented in the corn and wheat industry.
The warning of oil producers about the delay in prices
Although the Government assured that it is extending its initiative due to the good results, the oil companies are far from this affirmation. This considering that the rates have a delay of 131%, since in the last year prices increased by only 26%.
This situation, which will now continue throughout the year, is affecting the profitability of the industryTherefore, the companies request that if the trust is maintained, it be established based on actual production prices.
