Argentines run out of gasoline with a lack of dollars for imports – 10/26/2023 – Market

Drivers in Argentina now face completely closed gas stations and long lines to fill up, amid a dollar shortage that leaves tankers stranded at sea waiting to be paid to deliver fuel.

Scenes reminiscent of Venezuela in recent years have become common throughout Argentina, with cars circling the block waiting to fill up. Jorge Ferro, a 42-year-old consultant in Buenos Aires, tried to fill up his tank on Wednesday (25) at a gas station in Recoleta, one of the city’s best neighborhoods, but the gas station attendant said he could only offer 4,000 pesos ($11 , R$55) for premium gasoline.

“When I said I would try another gas station, he told me that all the gas stations in the area were closed,” Ferro said in a telephone interview.

The ever-longer lines of cars and unlit gas stations at night are tangible signs of a fiscal crisis that has gotten out of control. Argentina’s central bank is out of dollars to pay importers, with inflation approaching 140% and an imminent recession.

State-owned YPF has three tankers waiting with gasoline and diesel, but cannot unload the fuel until foreign suppliers, BP and Gunvor, are remunerated, according to two people with direct knowledge of the matter.

YPF and Gunvor declined to comment. BP did not respond to a request for comment. Two of the three ships, the Pacific Blue and the NCC Nasma, are anchored in the Rio de la Plata, near the Uruguayan side, according to data compiled by Bloomberg. YPF imported 6% of its auto gasoline supply in the second quarter, according to its most recent earnings release.

Election uncertainty is another big factor behind the headache for drivers. Before the vote for president on October 22, some gas stations suspended their sales, fearing a strong currency devaluation. The country is still in political suspense waiting for the second round on November 19th, between Economy Minister Sergio Massa and outsider Javier Milei.