Argentina: 60 USD/barrel oil

By 0 No tags Permalink 3

Despite falling oil prices consumers in Argentina are paying 3.75 USD for a gallon of gas at the pump, USD 4.23 if they want premium. This is because the government is keeping the price of crude paid to domestic producers in the 50-60 USD/barrel range. The policy began years ago as a price ceiling, paying domestic producers 70+ USD when the international price of crude was well above 1oo USD (see chart below). The program expired on December 31 of 2015, but the new government has decided to maintain it as a price floor, effectively making consumers subsidize the domestic ...

Mexico’s wholesale electricity market: insider’s advantage

By 0 No tags Permalink 2

Mexico’s new wholesale electricity market began operations on January 27 in Baja California, and on January 29 in the rest of the country, as established in the energy reform laws passed at the end of 2013. The wholesale electricity market, which is the cornerstone of the reform, was created to allow large consumers (capacity demand greater than 3 MW) to directly contract their electricity needs from qualified generators, and in so doing improve the price and quality of the electricity service. So far only one generating company, Grupo Fénix, has joined the ranks of authorized sellers along with CFE, the ...

New electricity prices in Argentina

By 0 No tags Permalink 1

The new administration of President Mauricio Macri, who took office on December 10, 2015, has taken drastic steps to increase electricity prices by eliminating adjustments and subsidies implemented in 2003 in response to severe economic conditions. The new reference tariffs, established via government Resolutions 6 and 7/2016, establish price increases expected to average 300-500%, depending on consumption. While these price increases have not yet been fully implemented, it is estimated that a residential consumer in the under 300 kwh category with a consumption of exactly 300 kwh will face a price increase of 484.3% (El Cronista, http://www.cronista.com/economiapolitica/Nuevas-tarifas-electricas-la-formula-para-calcular-las-proximas-facturas-y-cuatro-ejemplos-20160201-0048.html). Said customer will ...