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Strategies & Market Trends : BAK - Investing

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From: zZebraa6/21/2012 1:30:41 PM
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YPF

BUENOS AIRES (Dow Jones)--A day-old truck-drivers strike in Argentina has seriously disrupted industrial activity, Planning Minister Julio de Vido said Thursday.
Mr. de Vido, whose ministry oversees public works and energy policy, said diesel shortages caused by the strike have forced the government to redirect natural-gas supplies from industry to power-generation plants that can run on both fuels.
"We've maintained the minimal level [of gas] technically necessary to maintain industrial activity. This means a large part of Argentine industry will be paralyzed because of a lack of gas," he said at a televised press conference.
Mr. de Vido also said the government will enforce a 1974 supply law against truck owners, whom he accused of participating in the strike.
That could pave the way for the government to seize trucks and use drivers from the armed forces and other branches of the government to deliver fuel and other essential goods.
The government also will file criminal charges against those involved in the strike for breaking an oil-sovereignty law, Mr. de Vido said.
"This goes against democracy, against dialogue and against the freedom of transportation, against the acquisition of goods and services," he said.
Interior Minister Florencio Randazzo has filed criminal charges against the strike's leaders, claiming they had broken a different law.
The strike, which started Wednesday when truck drivers blockaded oil refineries and fuel depots, is part of a broader struggle between union boss Hugo Moyano and Argentine President Cristina Kirchner.
Mr. Moyano--whose family controls unions in trucking, toll roads, and other logistical services--is demanding the government approve a hefty salary increase and cut income taxes on truckers.
The strike has disrupted supplies of home-heating gas and fuel used by public transportation and motorists, Mr. de Vido said.
Mr. de Vido urged people to conserve fuel and suggested they not even try to get gasoline at crowded service stations.
"It doesn't make any sense to wait in long lines because the likelihood of not getting gas once you reach the pump is high," he said, calling the strike "unprecedented."
--Ken Parks contributed to this article.
Write to Taos Turner at taos.turner@dowjones.com
(END) Dow Jones Newswires
June 21, 2012 13:26 ET (17:26 GMT)
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