Argentina president threatens oil companies amid diesel shortage reports

BUENOS AIRES (MarketWatch) — Argentine President Nestor Kirchner has again threatened oil companies with a 1974 “supply law” that allows the government to fine companies for allegedly failing to supply the market.

Kirchner’s warning, delivered at a provincial public works ceremony Thursday, comes amid complaints by farm groups that diesel shortages have slowed the planting of this year’s wheat crop. Previously, farm groups had complained that diesel shortages were slowing this year’s record soy and wheat harvests, which are wrapping up.


“There can’t be a shortage of diesel here because the big companies like Repsol have to deliver it,” Kirchner said. “I told Minister (Julio) De Vido to put the ‘Supply Law’ into effect and the trucks are on the way.”

The government dusted off the “supply law” late last year amid reports of fuel shortages during the soy planting period. The measure allows the state to fine oil companies and imprison company executives for failing to meet domestic demand.

MarketWatch