A PYMNTS Company

Bolivia/Paraguay: Media accuses government of planning new gas monopoly

 |  June 14, 2016

Guillermo L. Achá Morales, chief executive of Bolivia’s state-run YPFB oil company, sent out a tweet that has been interpreted by several media outlets as confirming a plan to give its Paraguayan counterpart, Petropar, a virtual monopoly on natural gas distribution within Paraguay after the coming into force of a new trade agreement between the two South American neighbors.

YPFB currently holds several contracts with private distributors throughout Paraguay. However, the tweet by the Bolivian official suggests that this will last “until Petropar, as per the plans of Paraguay’s government, is able to take over distribution of the fuel.” The comment has revived accusations in Paraguay’s media that the government is looking to develop a brand new monopoly for the State-owned firm, which already has a virtual monopoly on liquid fuels (gasoline and diesel).

Achá’s comments seem to confirm a planned future monopoly for Petropar, even suggesting plans and time-tables for developing a network of gas-distribution systems along four Paraguayan cities, intended for the distribution of Bolivia’s natural gas.

Full Content: ABC

Want more news? Subscribe to CPI’s free daily newsletter for more headlines and updates on antitrust developments around the world.