Petrol stations suffer as lack of gas continues

By Javier Cardenal Taján

BuenosAiresHerald.com Staff

The head of the Independent Petrol Stations Asociación, Manuel García, came on stage to respond to the accusations made by the Fuel Dealers Federation (FECRA in Spanish) informing of an "alarming situation as regards an increasing gas shortage in the so called ‘white flag gas stations'. 

García expressed that if they "were to take into account this measure and its implementation", they had no other choice but that of firing a great number of staffers.

"This gas shortage situation has been going around for a long time; however, what happened this weekend was unprecedented", García said. 

Later on, García pointed out that DAPSA had informed all "white flag" or independent stations that it was to apply a 60 percent cut on petrol and gas supply for basic gas, and a 50 percent cut for gasoil.

Yesterday, FECRA expressed that they have reached to this point due to the fact that Dapsa distribution company, which supplies the stations, is to conduct a 60 percent cut on its gas supply as a consequence of having suffered "a dramatic reduction in the supplies they get from YPF oil company."

This situation is allegedly affecting close to 600 "white flag" gas stations, term used to describe petrol stations that are not tied up with exclusive supply contracts to any petrol companies and refineries.

This trend seems to be affecting the big-four companies: YPF, Esso, Shell and Petrobas. 

According to the head of FECRA, Rosario Sica, during 2009 Petrobas fired more employees than the other three. However, all of them appear to be "rationalizing" their stores.

Domestic gas demand has grown 4% during 2009, while it had already shown an upwards trend as it went up 11% in 2008 compare to the previous year.

This higher demand forced refinery companies to strengthen its output.

So far, the main concern has been the gas supply: gasoil does not seem to be presenting any complications. There are running-of-stock issues in several stations and also in several areas.

FECRA released a communiqué to show its institutional opinion over the matter, saying they were "concerned for the unexpected lack of communication DAPSA is showing" when dealing with the remarkable cut of supplies. The federation also expressed their fears of "being forced to close the stations."

According to the published declarations, the company also highlighted that they were involved in a "collapsing situation" due to the numerous associates' complaint phone calls they had received -who had previously received a message from DAPSA stating the company was now "forced to reduce their delivery."

FECRA leaders also expressed that "since November 2009" they have been constantly seeking ways of reaching an agreement with Cabinet Chief Aníbal Fernandez, who is said to be looking for a solution to the matter.

Within this uncertain scenario, FECRA's Director Board will meet next Thursday at the federation's headquarters to discuss the situation.