Government Signals Revision to Diesel Price Decree Amid Backlash

Facing continued criticism of Supreme Decree 5676 (the Aug 16 measure setting an initial Bs. 18/L reference price for large industrial diesel consumers and direct gas-station sales, an 84% jump from the prior Bs. 9.80/L rate), Deputy Minister of Hydrocarbons Hernán Paredes said the decree "has to be modified" to allow a more competitive diesel price. Proposed changes include broadening which sectors can import diesel directly and pressing state oil company YPFB to raise refinery utilization, currently running at just 18-20% of capacity. The subsidized Bs. 9.80/L rate for transport operators and households remains unchanged.