Ancap’s back is over, warned Stipanicic

Ancap’s back is over, warned Stipanicic
August 23, 2023 – 15:28

The union conflict with Fancap threatens to prolong maintenance at La Teja for 500 days and the president of the oil company warned that “every day that the refinery is stopped costs the country US$800,000.”

The president of the National Administration of Fuel, Alcohol and Portland (Ancap), Alejandro Stipanicic, stated that the state oil company Uruguay is in a delicate situation regarding the planned technical shutdown at the refinery the tile as of September 4, while the union continues with its position of not working overtime: “every day that the refinery is stopped costs the country $800,000”, he expressed.

The conflict between ancap and the union (Ancap Federation) is still standing, with the union’s decision not to work overtime or triple shifts during the period contemplated to carry out maintenance tasks in La Teja —which will stop its operation on September 4, although operations will begin later due to the delays in the schedule of preparations. This implies that the shutdown, originally planned for an extension of 100 days, could be extended up to 500 daysas Stipanicic explained at a press conference.

“We hope that the union will review its position and open a dialog instance to reach better agreements,” said the president of the oil company, who was quick to point out that “every day that the refinery is stopped costs the country $800,000.”

In this sense, the hierarch publicly asked fancap that makes “reason” prevail and that “there is sanity”. “Ancap is facing major transitions and we don’t know the end of the story. We cannot have working conditions linked to the first half of the 20th century, we have to think about the ancap of the future and in flexible relationships”, pointed.

Can fuels be affected by the situation at the refinery?

Asked about the possibility that the fuel prices increase as long as the La Teja refinery —and its exceptional margins— has been the source of the money with which prices at pumps have been subsidized against increases in international reference values.

“The fuels in Uruguay they adjust as a cap on what happens in the international price, and the costs or cost overruns that may be incurred are not important ancap for these union measures”, said Stipanicic, in this regard, and remarked that “the ceiling of local prices must be import parity”.

However, the president of the state oil company indicated that the delays in shutting down the refinery could affect the heritage of ancap.

“The Executive Branch is aware of the situation, following Ancap’s finances week by week. We already have authorization to request a loan of up to 300 million dollars until May 2024. We have already made a call to the local banks to go out with the tender in October and surely another one in November, within that authorization,” said Stipanicic, adding: “Unfortunately Ancap’s back is over. Any delay that there is in fuels from now on with respect to international prices will go against the assets of Ancap”.

Source: Ambito

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