The Truth About the LPG Shortage

Published on 17 July 2015

Gone are the days in which the prices of Liquefied Petroleum Gas (LPG) rose through the clouds creating uncertainty and uncertainty in the Peruvian population. Well, not only raised in the domestic, but also in the vehicular. Today, we can say that this increase is no longer part of the concern of people, because the supply has returned to normal, and consequently, the import of that product.

During this period it was considered that the problem continued due to a 'lack of political decision on the part of the government to promote long-term solutions and not only mitigating such as the import of LPG', said Antonio Jara, president of the Peruvian Packaging Corporation of GLP Jara added that, 'the storage of the Petroperú and Zeta Gas plants should be expanded, they have requested it months ago and it is not authorized by bureaucratic obstacles'. In conclusion, the rise in prices was attributed to a shortage, solved by the importation of a product with which we supposedly had an abundance.

The truth of the matter

"The increase of four soles that some sectors mention would occur if all the LPG consumed in Peru would be imported. But this is not the case, but only in approximately 15% of the market.”

A month of these statements, the situation has taken a big turn, because, although it is true the price rise continues, it does not occur as hastily as in past weeks. There is a "progressive reduction in the price", reported the Supervisory Body for Investment in Energy and Mines (Osinergmin). Raúl Pérez - Reyes, Vice Minister of Energy and Mines, said that "what should be transferred to the domestic market should be a reduction of around S /. 2.4 per balloon of 10 kilos of LPG. The increase of four soles that some sectors mention would occur if all the LPG consumed in Peru would be imported. But this is not the case, but only in approximately 15% of the market. " As we all know, the amount of LPG consumed in our country comes from Camisea.

There is absolutely no reason for the LPG ball of 10 kilos to rise above 0.60 cents or at most S /. 1.00, as a result of the import that is being made of fuel to complement the domestic market, "said the Minister of Energy and Mines, Rosa María Ortiz. The minister made a special request to housewives, because as we know, our market governs prices due to supply and demand. Ortiz urges them to change suppliers if they observe that the proposed price for domestic gas is higher than the norm, and in that way, regulating the market through their demand. 'Prices instead of rising, should go down, an increase in the price of LPG now is not explained by a problem of shortage or import', reported Pérez-Reyes and argued that if it is the opposite is because somewhere of the distribution chain, a part is taking advantage of the circumstance by increasing prices and trying to harm the entire population. Many times we forget that, as consumers, power is in our hands.

To avoid falling into deception, however, you must have all the information at hand. Find out, try Veritrade.

Back

Archive

May

Most Read

Latin American exports to China register rise in 2018 18 December, 2018 See more >

Color and speed - Import of luxury cars in Peru. 20 January, 2016 See more >