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Liquefied petroleum gas (LPG) supplies could be in jeopardy as changes to the Fuel Price Stabilization Fund (FEPC) cause market distortions, National Society of Mining, Petroleum and Energy warns .LUTS).
The hydrocarbon union made such a warning in a letter addressed to the head of the Ministry of Economy and Finance, Oscar Graham, in which he asks to look into the situation so as not to affect the local market.
According to the newspaper Gestión, the SNMPE letter objected that the technical conditions for inclusion CIS on FEPK.
These changes redefined the calculation of contribution and offset ratios starting from the export parity price and not just from the import parity of LPG.
As you remember, for processors and importers do not tolerate increases in fuel prices, FEPC compensates them, and when these prices fall, the fund must receive a refund or contribution from companies to avoid ups and downs in local prices.
SNMP points out that the fact that export parity is included to determine the price of LPG means that national fuel producers are compensated less than importers of the same product and contribute more to the fund.
For the union, this measure, introduced a few months ago, puts local LPG producers at a disadvantage compared to importersaffects competition in the market.
In addition, they point out that now the country no longer has a surplus of LPG, with which it can no longer fully provide the local market and exports, for which it imports from abroad more than 25% of the LPG that the Peruvian market requires.
It is worth noting that currently LPG is the second gas the most consumed in the country, second only to diesel fuel.
Another issue that local companies have had with FEPC is that so far, the state has not repaid nearly S$1,000 million it owes refineries in compensation, which has increased the financial cost of acquiring crude oil.
Source: RPP
I am Dylan Hudson, a dedicated and experienced journalist in the news industry. I have been working for Buna Times, as an author since 2018. My expertise lies in covering sports sections of the website and providing readers with reliable information on current sporting events.