In the first days of next week, the government will define what will happen to fuel rates in December. The last few weeks reflected a greater stability in international prices when compared to what happened in other months that were loaded with volatility.
One of the inputs that will once again be on the table of the Executive Branch will be Ursea’s Import Parity Price (PPI) report, which will provide data on what happened to fuel prices on the US Gulf of Mexico coast. between October 26 and November 25.
The latest data released by the Energy Information Administration (EIA) show that until Monday, November 21, the values of gasoline and diesel moved with slight drops compared to the immediately previous month.
In 27 days of the new measurement window, the average value for the simile of the naphtha Uruguayan became $2,097 per liter cheaper, and went from $30,078 to $27,981 (-7%) compared to the previous monthly average. For Super 95 gasoline, the most consumed in the country, Ursea takes the average international price of two types of gasoline: CBOB Regular 87 and CBOB Premium 93.
For him gasoil the closest possible update to what the PPI would indicate shows that the average price per liter fell $1.43, from $40.59 to $39.162 (-3.5%) in the monthly comparison. This fuel has as reference the price of Ultra Low Sulfur Diesel (ULSD 62).
These data processed by The Observer they are only an approximation of what has happened so far in the international market and take into account two central variables: the daily dynamics of prices in dollars in the US and the value of the exchange rate at the local level. The official numbers will be known next week when they are published by Ursea.
The local prices of gasoline and diesel remained unchanged in November, even though the figures indicated that the rates should be increased to align them with the import parity reference. That way Ancap’s net income was $2.77 below the PPI in the case of a liter of Super 95 gasoline, while in diesel 50-S it was $3.97 below, according to data from the entity.
The government will also add to the analysis Ancap’s financial projections, which will also release third-quarter accounting results on Tuesday.
The oil market showed positive news for the interests of Uruguay during the last week with prices that moved downwards and were around two-month lows. The price of a barrel of Brent crude finished the week in the range of US$ 84.
The fall was influenced by the resurgence of the covid-19 pandemic in China that raises fears of a slowdown in oil demand.
Another item on the markets’ agenda is the negotiations that aim to place a cap on the price of Russian oil. The members of the G7 would have mentioned a range between US$65 and US$70 per barrel, according to unofficial information. In this way they would authorize Russia to sell and export its crude at this price or below, which would allow it to partially escape the European embargo that will take effect on December 5, reported AFP.
Also added was the weekly report on US crude oil inventories produced by EIA, which showed a drop in demand for refined products.
UTE recorded profits of US$ 230 million
In the next weeks UTE, OSE and Antel will define, with the endorsement of the Executive Power, what will be the rate adjustments that will apply from next January. In the case of UTE, its president Silvia Emaldi expressed that the idea is that the correction is less than inflation. The last official projection that was included in the Rendición de Cuentas for 2023 foresees a record of 6.7%.
“As every year that this Board of Directors has made definitions, we want the adjustment to be below inflation and we are working in that direction. UTE will propose the adjustment metric, but it is the Executive that determines”, the hierarch affirmed in a press conference. The last adjustment resolved last December was 3.5% on average and the correction stood at 50% of the inflation projected by institutions and analysts for 2022, which at that time was around 7%.
On the other hand, the balance of the company showed that in the accumulated to September the company obtained profits of US$ 230 million. The billing for sales of electricity at the local level showed a growth of 6.5% measured in national currency. For its part, the export of energy to the region reported a billing of $6,685 million (about US$160 million) up to that date, according to the balance published by the Central Bank.