On October 27, the liquefied petroleum gas (LPG) industry chain carried out a massive mobilization in the cities of Buenos Aires, Córdoba, Corrientes, Paraná (Entre Ríos), Mendoza and Posadas (Misiones), which included delivery of petitions in each of the provincial governments and at the headquarters of the National Energy Secretariat (SEN)..
“A few days ago we mobilized more than 250 bottles distribution trucks in six cities in the country. Only at the door of the SEN we have about 120. For tomorrow we plan to move more than double the previous time to Av. Paseo Colón 189, headquarters of the Secretariat”, said the head of CEGLA. It should be noted that TODAY’s mobilization will take place in the same cities as last week.
Along with the movement of trucks, petitions will be delivered again to the Minister of the Economy, Sergio Massa, and to the Secretary of Energy, Flavia Royón, explaining the very serious economic and financial situation that the liquefied petroleum gas fractionation companies are going through. In addition, the following measures are requested in order to avoid the bankruptcy of hundreds of family businesses:
- Urgent payment of temporary economic assistance (AET) that has been owed since March of this year. They represent very significant figures that compromise the continuity of operations.
- The immediate recomposition of margins of the sector’s marketing chain to cover costs and reasonable profitability as established by Law 26,020. For the fractionation stage it is $1,071 and for the distribution stage it is $1,023, totaling an average final country value without taxes of $2,094 per 10-kg bottle.
- The immediate implementation of a formula for automatic updating of reference prices in line with current regulations and in accordance with high inflation.
- Granting of subsidized credits that allow compliance with the mandatory renewal of the vehicle fleet assigned to the distribution of LPG.
situation status
The situation is very complex because there are four provinces in the northeast of the country that are not connected to the natural gas network. Chaco, Corrientes, Formosa and Misiones depend entirely on liquefied petroleum gas for basic things like hot water and cooking. Transporting liquefied gas from the main production outlets does not even cover the authorized reference prices for the fractionator stage in those provinces. A cut in the supply of LPG in those territories would put them on the verge of energy collapse.
The government continues to finance
In the last few hours, the Secretary of Energy ordered the transfer of $320 million to a group of companies that are part of the Liquefied Petroleum Gas (LPG) chain, with the purpose of ensuring the supply of cylinders in low-income households within the framework of the Home Program.
Resolution 754/2022, published today in the Official Gazette, ordered the disbursement of $320,016,514.97 in eleven assistances to distributors, four to fractionators and five to producers.
The Hogar Program was created by decree 470 of March 30, 2015, and its financing was established through the trust fund to meet the LPG needs of low-income sectors and for the expansion of natural gas networks.
Source: Ambito

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