Argentina Begins to Suffer Fuel Shortages; Ecopetrol Gets Fracking Go-Ahead

Bloomberg Línea — A shortage of diesel has begun to hit Argentine gas stations, which are warning about a crisis in the sector due to the increase in international prices and the government’s reluctance to import the fuel.

Colombia’s environmental licensing authority (ANLA) has given its approval of state-owned oil company Ecopetrol’s fracking pilot project in Puerto Wilches, Santander, despite protests against the project.

And on the region’s stock markets, the Mexican exchange was the only one among its Latin American peers to register gains, in line with the recovery shown by U.S. stocks. The S&P BMV/IPC (MEXBOL) closed up 0.45%, driven by the healthcare, real estate and consumer staples sectors.

Following is a roundup of Monday’s news from Bloomberg Línea and Bloomberg reporters across Latin America.

Argentina:

• A shortage of diesel has begun to hit Argentine gas stations, which are warning about a crisis in the sector due to the increase in international prices and the government’s reluctance to import the fuel.
• Congress member Javier Milei has announced that he intends to run for president, and said it is necessary to dollarize the Argentine economy, a proposal that was rejected by many academics and consultants.
• MercadoLibre (MELI) has said it will not be affected if the Brazilian government decides to tax goods sold in foreign e-commerce platforms.

Brazil:

• Brazil’s central bank chief, Roberto Campos Neto, reiterated that a Selic benchmark rate of 12.75% should be enough to bring inflation expectations to target within a relevant horizon, according to a TV interview broadcast on Sunday.

Chile:

• IMF staff see Chile’s economic recovery as being on track and considers that the withdrawal of the ongoing macroeconomic stimulus will contribute to mitigate risks and inflationary pressures.
• A nascent but growing movement within Chile’s Constitutional Convention, which is charged with drawing up a new constitution, is considering offering voters other options beyond a simple ‘yes’ or ‘no’ vote in the plebiscite that will determine the new document’s approval.

Colombia:

• Colombia’s environmental licensing authority (ANLA) has given its approval of state-owned oil company Ecopetrol’s fracking pilot project in Puerto Wilches, Santander, despite protests against the project.
• According to a Sinnetic survey, inflation and devaluation are among the issues that Colombians are most concerned about. Most analysts expect the increase to be more than 100 points this Thursday, which would leave interest rates above 5%.

Costa Rica:

• On Sunday, April 3, Costa Ricans will go to the polls in the first round of the presidential elections.
• Avianca became the largest operator in Costa Rica by adding three new routes to its itinerary of direct flights from San José. It currently flies from the country to 12 destinations with a total of 57 weekly flights.

Ecuador:

• Ecuador aims to sign free trade deals with 12 countries, including Canada, China, the Dominican Republic, Japan, Mexico, South Korea and Israel, by 2025, Foreign Minister Juan Carlos Holguín said in an exclusive interview with Bloomberg Línea.

Mexico:

• State-owned Petróleos Mexicanos increased oil exports despite producing less crude during the month of February, exporting 925,000 barrels per day of oil, a monthly growth of 11%.
• Grupo Aeroportuario del Sureste (ASURB), the operator of Cancun International Airport, assured that there are no indications of gunshots or explosions having been detonated in any area of the airport, despite media reports that a shooting had occurred inside the air terminal on Monday.

Uruguay:

• Uruguayan President Luis Lacalle Pou once again expressed his criticism of his Mercosur partners on Sunday, whom he described as “often too protectionist”. The president said that Uruguay will focus on “opening up to the world”, while continuing his bid for an FTA with China.