Bad news for oil companies. Argentina implemented a fiscal incentive program in 2008 and it is now suspending those plans. This should create savings of 2 billion pesos each year. As the Planning Ministry explained, “This decision is based in the modifications of the market’s conditions in which these programmes were established in 2008.”
They also explained that their initial aims have already been accomplished, making it less important to pour extra money into the projects. The companies that will be hit at this point include: Panamerican Energy (PAE), YPF, Occidental-Sinopec, Pluspetrol, Total Austral, Enap Sipetrol and Pretrogras. The Refino Plus companies that will be affected include: Esso, Petrobras and YPF.
The oil industry is just one of several that are being hit by government cuts to help the economy.
