Argentina Cuts Off Fuel Exports Amid Shortage Reports BUENOS AIRES -(Dow Jones)- The Argentine government cut off fuels exports and called for a pump price rollback Monday amid reports of fuel shortages, government news agency Telam reported, citing unidentified government sources.
The government officials said the export freeze, which follows a sharp increase in export taxes in November, was authorized under a 1974 supply law that requires companies to meet internal demand, Telam reported. The export freeze will remain in effect until supplies at service stations normalize and prices fall back, Telam said.
In addition to cutting off fuel exports, government planners also have called for retailers to drop pump prices back to levels seen in October of last year. Argentine pump prices are among the lowest in the region due to government pressure that began under President Nestor Kirchner, whose four-year term concluded last month. He was replaced by his wife, Cristina Fernandez, and some analysts had speculated that she would allow prices to rise some as the nation faces the prospect of becoming a net oil importer by the end of the decade.
Net Export Crisis, here we come.
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