Alberto Otárola: “Petroperú guarantees the adequate flow so that gasoline does not go up”

The president of the Council of Ministers, Alberto Otárola, asserted that, despite not receiving the economic support he had requested, Petroperú plays a fundamental role as a marker for the reduction of fuel prices in Peru.

In an interview with Latina, the premier reported that the state oil company will not receive the requested support of US$1.15 billion, nor will its debt of US$750 million that it has carried since 2022, corresponding to the first request for support for the purchase of fuel, be capitalized.

“What I can say is that that taxi driver who fills the tank with regular gasoline at the intersection of Isabela Católica and Andahuaylas and that costs S/15, that is possible thanks to the fact that Petroperú manufactures that gasoline. Otherwise, that fuel would cost S/. /18 or S/19,” said the head of the PCM.

In a previous conversation with La República, the president of the Petroperú board of directors, Pedro Chira, had indicated that, if the debt was not capitalized, at least a longer period was expected for its payment. The US$750 million had to be returned in full in 2024.

“Petroperú is not going to be capitalized, the debts with the MEF are going to be rescheduled […] Petroperú is a company that guarantees the adequate flow so that gasoline does not go up,” Otárola highlighted.

The two largest oil producers in Peru are Petroperú (Talara, 95,000 barrels) and Repsol (La Pampilla, 113,000 barrels). Peru’s daily demand is more than 250,000 barrels, so the difference is imported.

Although Petroperú has not had vertical integration in many years (it has only been operating a refinery and production lots for a few months), it has always generated profits and brought, at a loss, fuel to the most remote areas where private fuel does not reach.

Its net production markers – without taxes – are similar to those of other countries in the region, but are below the sales price because it does not have its own taps to participate in the retail chain. It is not true that Peru has the most expensive gasoline because of Petroperú.

Countries like Venezuela, Ecuador, Argentina and Bolivia have cheaper gasoline, but because the State subsidizes the fuel. Furthermore, in Peru the Repsol company has a business that, in theory, should allow it to offer better prices than Petroperú. But he always keeps up.