Perú: Competition would reduce fuel prices – Ochoa

Aurelio Ochoa, former president of State-owned oil company Perupetro, has said that Peru’s fuel market continues to show high prices despite the fall of over two thirds in the international price of crude oil.

“There is a 36% difference between the prices offered at refineries and those at service stations.” said the now retired official. In this sense, he pointed at increased competition in the fuel market as a way to make prices finally fall. Current providers earn a profit of up to 35% to 45% on their sale of gasoline, which is considerably higher than the 8% profit margin earned in neighboring Colombia.

“Colombian providers are very careful not to go overboard with their profits, otherwise Ecopetrol (Colombia’s own national oil company) immediately steps in to break the market back” Said Mr. Ochoa. Perupetrol, he elaborated, would be the appropriate institution to take on this same role of regulating and correcting the market. However, the company would first require a considerable strengthening.

Full content: Diario Correo

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