A PYMNTS Company

Argentina: Talks of Shell exit raise alarms in gasoline sector

By  |  April 18, 2017
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.

    Get the Full Story

    Complete the form to unlock this article and enjoy unlimited free access to all PYMNTS content — no additional logins required.

    yesSubscribe to our daily newsletter, PYMNTS Today.

    By completing this form, you agree to receive marketing communications from PYMNTS and to the sharing of your information with our sponsor, if applicable, in accordance with our Privacy Policy and Terms and Conditions.

    “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

    Want more news? Subscribe to CPI’s free daily newsletter for more headlines and updates on antitrust developments around the world.