Argentina: Talks of Shell exit raise alarms in gasoline sector

Rumors of a possible exit by oil multi-national Shell from Argentina has raised concerns among service station owners throughout the country, fearing that the Anglo-Dutch company’s assets may be snatched by State-run company YPF – which would leave it in control of more than 50% of the country’s fuel distribution market.

“If YPF were to add Shell’s stations, it would represent a competitive disadvantage for other retail operators” said Carlos Gold, president of CECHA, an industry group. Shell announced two months ago that it would be reviewing its position within the country, despite the fact that it is currently number 2 in the distribution sector, with over half of the Premium fuel market cornered. This success has caused talks of abandoning the country to be mostly dismissed.

In the end, any transfer of assets from Shell would require approval from the Government and, even if YPF should prevail over other competitors, “which is unlikely, they would then have to be supervised by the Defense of Competition Commission”, said Gold.

Full Content: Clarín

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