Paraguay: Gas agreement will seek to “stimulate competition”, says minister

Paraguay’s government has signed a vital deal with Bolivia, through which the Andean country will provide Paraguay with gas imports over the next 20 years, selling the resource directly through State-owned oil company Petropar. Government authorities have said that this deal will allow Petropar to act on behalf of greater competition among national buyers, allowing for lower prices to consumers.

Oscar Stark, vice-minister for trade, has stated that the gas sold by Petropar would achieve this price reduction by stimulating competition among the companies that sell the gas on to consumers. The aim, he insisted, is not to create a state monopoly, but to prevent the formation of an oligopoly and to ensure a competitive field.

However, these claims have been questioned by Ausberto Ortellado, President of Paraguay’s Association of Service Station Owners and Operators (APESA). In his view, the government’s plan would only increase prices, as some distributors would be forced to forego cheaper imports in order to buy directly from Petropar.

Full Content: Paraguay.com

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