Argentina brings in licence requirements for oil imports

Imports and Exports | | MIC Customs Solutions |

More documentation will be required for oil and gas going to Argentina.

Non-automatic licences will now be required for those wanting to import oil and gasoline into Argentina in order to protect the economy, a government spokesperson has said.

Production minister Matias Kulfas explained that further documentation on purchases abroad will be required going forward, which may take up to two months to authorise.

Crude and fuel imports will be subject to the new rules, but aviation fuel, LPG and fuel oil will be exempt.

The news comes after a price war on oil erupted between Saudi Arabia and Russia, slashing global oil benchmarks by 25 per cent at a time when they were already vulnerable due to the coronavirus outbreak.

Mr Kulfas said the new measures will prevent international crude activity from hurting local producers.

"The objective is to guarantee national production and employment," he added.

According to data from the energy secretariat, Argentina's oil production rose by four per cent year-on-year in 2019 to 508,600 barrels per day.

However, it has recently become increasingly reliant on expensive energy imports that are costing it billions of dollars a year, leading to renewed calls for the country to become more self-sufficient in oil and natural gas.