Govt to maintain LPG ref price through Sep

Bnamericas Published: Wednesday, March 29, 2006
Argentina's energy department has passed a resolution to maintain the reference price of domestic liquefied petroleum gas (LPG) from April 1-September 30, government news agency Télam reported. The reference price for LPG in zone 1 will remain at 18 pesos (US$5.84) per 10kg container for businesses, which will translate into 19.8 pesos for end-users, department of fuels price advisor Norberto Giuliano told BNamericas. Zone 1 includes the provinces of Jujuy, Salta, Catamarca, La Rioja, San Juan, Mendoza, La Pampa, Buenos Aires, Córdoba, San Luis Tucumán, Santiago del Estero, Entre Ríos, the southern part of Santa Fe and the city of Buenos Aires. The reference price in zone 2 will stay at 19 pesos per 10kg container for businesses and 20.9 pesos for end-users, he said. Misiones, Corrientes, Chaco, Formosa and the northern part of Santa Fe make up this zone. "What has increased significantly is the export price, but costs have remained stable in the domestic market,," said Giuliano, adding the domestic reference price will not increase in September if costs remain as they are. The reference export parity price for propane will increase to 1,340 pesos/tonne next month from 972 pesos/t in August 2005, while butane will increase to 1,422 pesos/t from 1,030 pesos/t in the same period, according to information provided by the official. The LPG reference price in zone3, which includes the Patagonian provinces, is calculated by a separate formula as the zone uses subsidies that do not apply to the rest of the country. The reference prices for LPG do not take into account 10.5% VAT, Giuliano said.

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