The lack of diesel continues complicated gas stations. YPF has decided to purchase three ships of low sulfur diesel, used for diesel, to be delivered between July and August.

The operation will take approx Import of 150 million US dollars, according to data from industry analysts. Once the diesel is received, YPF must then adjust it in its refineries.

Demand for diesel is 20% higher than in 2019 and the situation found local oil companies with no immediate answers. These companies are refining to 80% capacity. In Argentina there is an abundance of crude oil – and it is exported – but the technical characteristics required by diesel oil are different from those of naphtha.

The international supply of fuel is achieved at “record” prices, due to the Russian invasion of Ukraine. Gasoline prices are at an all-time high: pumps in the United States charge twice as much as they did three years ago.

In Argentina, the quantities of diesel it increased 12% a week ago and have accumulated 30% in the year. It is lower than in the rest of the world and in neighboring countries (Brazil, Uruguay, Chile and Paraguay).

Argentina has been suffering from diesel supply problems for three months. Bloomberg reported that the state oil company offered 850,000 barrels. At YPF they don’t want to talk about barrels and say that the purchase is made in cubic meters. In this sense, their requirement is 135,000 cubic meters, as specified.

Each ship usually carries 35,000 cubic meters, for which YPF will seek to purchase three ships.

The increase in agricultural activity has stimulated the demand for diesel, which is consumed by agricultural producers at harvest time. They also use it in truck transport.

Local oil companies do not want to increase diesel productionbecause it means to do at a loss The prices that are paid to the pumps for this product are not enough to cover their costs, according to the companies. Instead, profitability improves when they ship to the wholesale market, where they are paid a higher price. But almost everyone wants to stock up at the stations, which are cheaper than the wholesale channel.

Import operations usually cause losses to oil companies, because they cannot pass on the higher costs. Fuels rose 60% in dollars. But local suppliers have adjusted – so far – 30% in pesos.

According to analysts, nearly half of what oil companies import for diesel is at a loss.

To meet local demand, both Raizen (the company that manages the network of Shell stations) how YPF increased its imports.

The government also ordered oil companies to temporarily use a greater blend of biodiesel in diesel to improve supply. This will imply that they have higher costs.