Doesn't this suck....walk away PBR and don't look back
Argentina Fines Petrobras For Lack Of Diesel Supply -Report
Last update: 11/20/2007 9:42:26 AM
BUENOS AIRES (Dow Jones)--The Argentine government's price control office has fined the local unit of Brazil's state-run oil company Petroleo Brasileiro SA (PBR), or Petrobras, 500,000 pesos ($160,000) for failing to supply diesel fuel at five service stations in the Argentine capital, business daily El Cronista reported Tuesday.
The government's Domestic Commerce Secretariat, which reportedly issued the fine, could not immediately confirm that it did so. Likewise, Petrobras representatives in Buenos Aires did not immediately have any information regarding the report.
The fine was reportedly issued under a 1974 supply law that President Nestor Kirchner's administration dusted off last year amid reports of diesel shortages as farmers moved to plant soy.
The measure allows for fines and imprisonment of executives from companies that fail to supply goods.
Prior to this week, previous fines had been aimed at the local unit of Royal Dutch Shell PLC (RDSA), which has rejected claims that it is failing to supply its service stations.
Argentine farm groups frequently report diesel shortages during key crop planting and harvest periods.
Domestic refining capacity has reached maximum levels, meaning that additional diesel must be imported, an unsavory option for fuel retailers who say de facto government price controls would force them to sell fuel imported at world prices at a loss in Argentina.
-By Drew Benson, Dow Jones Newswires; 5411-4311-3127; andrew.benson@dowjones.com |
