Argentina’s federal government, oil-producing provinces and fossil fuel companies have reached an agreement to cut retail gasoline and diesel prices by 5 percent to reflect the decline in global oil prices, officials said Tuesday.
The agreement, which takes effect Jan. 1, was drafted by the planning and economy ministries and state-controlled oil company YPF.
Argentina’s 10 oil-producing provinces – Chubut, Formosa, Jujuy, La Pampa, Mendoza, Neuquén, Rio Negro, Salta, Santa Cruz and Tierra del Fuego – signed on to the pact.
Prices in the world oil market have fallen since June by nearly 50 percent, to $55 a barrel.
During his daily press conference, Cabinet chief Jorge Capitanich said the reduction in fuel prices “will have a very positive impact on the country’s economy” as 2015 approaches, and he emphasized that the agreement was the result of consensus among the parties.
“After so long we do have good news: the reduction in fuel prices, which will have an impact up and down the production chain,” he said. “It is good news for all Argentines.”
Date: December 23, 2014