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Argentina bans petroleum export

Argentina bans petroleum export  A midst reports of fuel shortages and rising domestic fuel prices, the government of Argentina has decided to freeze export of petrol and petroleum products until supplies to the domestic market is normalized and prices drop to the October 2007 level.

Domestic fuel prices in Argentina remain the lowest in the region due to government pressure. The price of premium petrol had remained steady at 1.99 pesos (us $0.64) per litre since 2005. Petroleum companies, however, started raising fuel prices from April 2007, which saw a further increase during the last three months. In November 2007, the government raised the export tax on petrol from 5 per cent to 35 per cent to restrict exports and increase domestic fuel supply. Fuel retailers, however, did not drop fuel prices at pumps, prompting the government to temporarily halt fuel exports.