ICYMI: Fuel queues surface in Argentina as FX shortage leaves oil tankers stranded at sea

Dollar shortage in Argentina has left oil ships stranded at sea, forcing some fuel stations in the south-american country to shut down.

This has led to long queues in petrol and gas stations that are still in operation, according to a Bloomberg report, which said there are tangible signs of a fiscal crisis spiralling out of control.

According to the report, Argentina’s central bank is running out of dollars to pay importers, with inflation near 140 percent and a recession looming.

Two sources cited in the report said YPF, Argentina’s state-run energy giant, has three tankers waiting with gas and diesel for import, but can not offload the fuel until BP Plc and Gunvor, which are foreign suppliers, are paid.

Two of the three ships, named Pacific Blue and NCC Nasma, are anchored in the Rio de Plata river, closer to Uruguay’s coast.

It said that Argentina’s dollar scarcity is leaving YPF unable to pay for gas imports.

The retained cargo has a volume of 120,000 cubic meters, which represents 7 percent of monthly petrol sales in the country, or about $150 million, one of the sources said.

In the report, it was said that “election uncertainty is another big driver behind commuters’ headache. Before the Oct. 22 general election, some gas stations suspended sales as customers tried to stock up on gas, fearing a sharp currency devaluation that looks delayed for now”.

To resolve the fuel scarcity, Argentina’s government said it will import 10 fuel shipments to guarantee local supply of petrol and diesel after the recent demand spike and shortages. 

In another report, Reuters said the country’s energy secretariat said Argentina will increase its refining capacity at the country’s main refineries.

In the next few days, the secretariat said the shortages will be resolved.