Argentina Stops Fuel Exports Due to Shortages - 1/11/08

Reports of fuel shortages caused the Argentine government to stop fuel exports and demand pump gas price reductions. The export freeze comes right behind a sharp increase in export taxes required by a 1974 supply law.  This law requires companies to meet domestic demand.  The halt in fuel exports will continue until supply levels come back to normal. 

The Argentine government also called for the price of pump gas to be dropped back to the prices seen in October of 2007.  Under President Nestor Kirchner, pressure was put on distributors demanding low pump prices making Argentina have the lowest gas prices in the region.  

Pump prices have been frozen by President Kirchner since March of 2005.  Premium gas had been around $0.64 per liter until April of 2007 when it began to rise. 

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