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Price cap on jet fuel for YPF, Royal Dutch Shell, Esso

By  |  March 12, 2012
Price cap on jet fuel for YPF, Royal Dutch Shell, Esso

Argentina’s government has ordered YPF, Royal Dutch Shell and Esso to put a price cap on jet fuel for airlines with planes registered in the country. The decision was reached following the antitrust commission’s report finding that oil companies charged jet fuel rates that were 47 percent higher than those of super gasoline. In the United States, according to the watchdog, the rate is only 2.1 percent higher. Télam, Argentina’s national news agency, reports that the price cap of jet fuel is to be set at 2.7 percent of super gasoline at the gas station nearest to the airport where it is loaded.

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    YPF is the main jet fuel supplier in Argentina. The government’s move is seen as a measure to benefit LAN Argentina and state-run Aerolineas Argentinas, and also to encourage companies to increase investment in energy output. Last month, Aerolineas Argentinas had accused all three fuel companies of overcharging for jet fuel.

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    Full content: Reuters