March 7, 2014
Shell, YPF hike prices
Other retail fuel companies are likely to follow suit
On the first day of the year, drivers were faced with an unpleasant surprise at the pump, when fuel prices increased across the country in two key retailers.
Shell hiked its retail prices between six and 10 percent yesterday, while state-owned YPF’s prices increases averaged 6.8 percent.
The other fuel retailers like Axion, Petrobras and Oil are likely to follow suit in the short term, although no other changes were known by press time.
Shell upped its Diesel Formula product to 8.32 pesos per litre at the tank, also increasing its Diesel V-Power to 9.97 pesos, V-Power Nitro Petrol to 10.59 pesos and Super Petrol to 9.36 pesos the litre.
For its part, YPF targeted its diesel and premium fuel prices, with its premium supply in Buenos Aires City rising to 9.99 pesos the litre. It also raised Super Petrol to 8.91 pesos the litre, Diesel 500 to 8.15 pesos and Euro Diesel to 9.30 pesos the litre.
The overall nationwide demand for fuel rose 4.4 percent during November, which YPF converted to a 10.1 percent increase in sales, according to data from the Energy Secretariat.
YPF’s prices have traditionally been the lowest in the sector, but over the last year the company has taken steps to close the gap with the other retailers.
The last time both YPF and Shell raised their prices was November 25 when the cost at the pump jumped 6 to 7.5 percent on average, pushing premium fuel prices near to the 10-peso mark in much of the country.
In that instance, other fuel retailers were quick to follow the lead, and hiked their own prices just hours later.
Those hikes came a day before the expiration of a fuel pricing schedule implimented by outgoing Domestic Trade Secretary Guillermo Moreno in April, which essentially set maximum prices for fuel retailers.
Herald staff with DyN