Camisea defends cost overruns on LPG balloon

Cusco. 80% of the demand for LPG (Liquefied Petroleum Gas) in Peru is supplied by the Camisea Consortium that extracts the resource from the deposits located in the Cusco district of Megantoni. The remaining 20% ​​are imported by companies such as Limagas, Llamagas, Repsol, among others. Despite this distribution, the price is defined by the cost of oil in the international market. That is to say, Camisea levels its prices to that of imports despite the fact that the input costs less in the country.

The manager of Hunt Oil, a company associated with Camisea, Martin Grisolle, explained that they raise their prices to match what importers demand and “not discourage them”. He said that this is the only way to keep supply and demand balanced. “We seek to avoid generating a black market for LPG in Peru,” he argued.

That price parity is not regulated, however, for Camisea, not doing it would mean putting attention to the demand for LPG in the country at risk. According to PetroPerú, the demand for LPG in 2020 was 124,622 barrels per day on average.

For the Petrochemical Industry specialist, Antonio Gamero Marquez, there is a use of Camisea. He argued that the LPG cost surplus carried by the consortium, protected by price parity, “is not subject to law.” “The more oil rises in the international market, the more Camisea charges, why? if your costs in Peru are low. If the production of LPG in Peru is low. And that is endorsed by the government at the expense of consumers’ pockets.”He objected.

For Gamero, the cost overrun is not regular. It ensures that a large part of the gas liquids for LPG come from batch 88, which as a rule has regulated prices. He remarked that more than 48 barrels of liquids are extracted from said well by Pluspetrol, which is equivalent to 57% of the liquids produced in Peru.

The president of the Gas Institute of Cusco, Iván Huamán, agrees with Gamero that the solution to this price formula is for the government to authorize Petroperú to import LPG and to open prices. Even Gamero believes that a public company should be created to handle natural gas and all its derivatives.

Sky-high LPG prices in Cusco

The 10 kg LPG balloon in the Imperial City is around S / 60. In the communities of the most remote districts such as Megantoni, which is home to the Camisea gas fields, it can cost up to S / 150. The price rises due to transportation, since the LPG is processed at the Pisco plant and from there it is distributed to the rest of the country.