They further cap dollars for oil companies and ask them to self-finance their imports for 90 days

The oil companies went to the Central Bank on Wednesday. They knew what awaited them: a tightening of access to dollars for imports. Since March they have faced long waits to obtain import permits. In a meeting they confirmed this the outflow of foreign currency will be dropper.

And they asked them, as they have already done with automakers and will do with other sectors in which multinationals operate, who self-finance their purchases abroad for at least 90 days. They have to get the dollars from their parent companies or international banks.

“We joined the industry because we are optimizing the use of currencies, just like we did with medicines and depending on the drought, to maintain a flow that can support growing demand,” official sources say. This was the conclusion they reached after a meeting with Miguel Pesce, president of the central bank, Flavia Royón, secretary of energy, and Matías Tombolini, secretary of internal trade, with the oil companies.

Pesce and Tombolini asked the oil companiesHere’s what your import needs will be in the following months, with Royón as the interlocutor of the companies. The companies have described a scenario where They plan to export more than import, but where they also need certain imported inputs.

“As the demand for fuel grows, we need to order the consumption of foreign exchange. As shown by the EMAE, fuel demand in Argentina is growing by 6%. There are no restrictions, what is there is a priority”, official sources stressed.

During the first quarter of the year, energy exports approached 2,000 million dollars, while imports reached 1,800 million dollars. This left a trade surplus of $200 million.

Oil companies have suffered from complications to bring in parts, drilling equipment and other services. “We could drill more and we don’t because there is a lack of important inputs”, say the managers of the sector to the trade unionists. “The plant is not that new after all, we have already had problems authorizing imports”.

During the winter of last year, Argentina stepped out to import fuel oil and diesel in larger than usual quantities. During the winter, there was a lack of diesel which YPF was slow to control: the stations recorded continuous stock outs, especially those located indoors. To tame this problem, imports have been resorted to. But, at the time, Argentine exports exceeded $88,000 million, a record, and there were dollars to import, especially if it was YPF.

The drought is causing a drop in exports. There are fewer dollars and the government manages them. Import restrictions are being felt by nearly every industry sector, from automakers to tire makers.

Companies have painted a picture of lower demand for foreign exchange this season than in 2022. Over the past year, the Russian invasion of Ukraine has sent prices of all energy products skyrocketing. Cammesa, wholesale manager of the electricity system, imported fuel for the production of electricity. He did this in order not to have to buy LNG, which was even four times its average value.

But this year the strategy was different. The country has already anticipated LNG purchases and the outlook should be clearer in relation to foreign exchange demand in the winter.

Economics estimated that the Russian invasion of Ukraine damaged the country with an impact of $4.9 billion in 2022. It’s because they had to pay more for gas imports, which are needed in the winter. While Argentina benefited from rising agricultural commodities (which generated more export-duty revenues than expected), rising energy prices fattened money intended to bring in gas from abroad. The forecast for 202