YPF sees a rise in fuel prices “in the near future”

State-owned oil company YPF said Thursday that it expects gas station prices to rise in the “near future,” given high inflation and the expectations of a devaluation exchange rate, company executives, including the chief financial officer, said. Alexander Lewat an investor conference on second quarter results for the year.

The latest hike in oil companies was in Junewhen they raised diesel by 12% at the height of the supply problem. Previously, all fuels had risen by an average of 11.5%.

YPF plans to continue with the grants it has distributed for most of the year as it tries adjust prices minimally given the high inflation in Argentina and the evolution of the devaluation of the exchange rate, they added.

The total impact of a devaluation of the official exchange rate is “difficult to estimate”, they assured.

Executives said wage increases were negotiated with unions until March 2023 and anticipated that the oil company plans a 10% increase in capacity. at the Luján de Cuyo plant, again for March.

Meanwhile, they indicated that the pipeline shared with Chevron is expected to return to operation in early 2023 if “important situations” are not identified. Bringing the pipeline online should add up to 100,000 barrels per day increased capacity by the end of 2023.

YPF estimates that its total hydrocarbon production will increase by one percentage point, compared to an 8% increase previously forecast.

lack of diesel

The company “does everything it can” to improve logistics that caused diesel bottlenecks earlier this year, the state-owned company directors said. In this sense, YPF add more trucks to the fleet to expand capacity.

As for the forms it will use to finance itself, the company sees the ability to raise funds in the local market and hopes to be able to refinance international maturities in 2023-2024. About 60% of YPF’s debt maturities in those two years are international depreciation.

YPF also raised capital investment estimates by 10% for 2022, from $ 3.7 billion last quarter. Much of the the increases are linked to inflationary pressures.

Increases in production also contribute to increased investment, they said.

The company made a profit of $ 798 million in the second quarter, compared with a loss of $ 492 million in the same period last year.

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