Sergio Massa faces two big tasks. He’s Argentina’s Economic Minister and also a presidential candidate.
Recently, fuel became scarce in Argentina. Long lines formed at gas stations in Buenos Aires and other cities.
Javier Milei, Massa’s opponent, is using this issue in the campaign. Last Sunday, Massa issued a warning.
He said if the fuel crisis isn’t solved by Tuesday midnight, no exports will leave on Wednesday. He stated that Argentina’s oil should serve its people first.
Massa thinks some companies are withholding fuel. These companies expected the government to devalue the national currency.
But the government didn’t do it. Meanwhile, Argentina’s foreign reserves are low. This makes it tough to pay for imported goods, like fuel.
Strict rules also affect foreign currency access. These rules have delayed some payments. Ships carrying fuel have been waiting offshore for payment clearance.
Argentina produces much of its own oil. But it still imports about 15-20% of its diesel. The current rules have led to minimal imports.
Moreover, the government sets retail fuel prices lower than wholesale prices. So, large buyers fill up at regular stations, leaving less fuel for everyone else.
Leading oil companies expect the situation to improve. They say high demand due to holidays, elections, and planting season caused the shortage.
This high demand met a low supply because of refinery maintenance. In this climate, Milei took his chance.
He’s using the fuel issue to criticize Massa’s policies. He blames government policies for the shortages and rising prices.
Both Milei and Patricia Bullrich, a third-place candidate, warn of future crises. They say if Massa wins, these problems will continue.
Massa must now solve the current crisis and assure voters that he can prevent future ones.
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