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Shell hikes gas prices in Argentina

Last Updated: Tuesday, February 4, 2014 - 01:37

Buenos Aires: Shell raised fuel prices in Argentina by 12 percent Monday, drawing fire from the government of President Cristina Kirchner as it struggles with inflationary pressures.

Jorge Capitanich, Kirchner`s chief of staff, accused the Anglo-Dutch oil giant of acting "contrary to Argentina`s interests."

"It`s a unilateral decision to do harm," he said.

The 12 percent jump was Shell`s second price increase this year, following a seven percent hike in early January.

Shell said the increase reflected the sharp increase in the peso cost of imported oil.

The peso has lost 18 percent of its value so far this year, including a 14 percent plunge when the Central Bank stopped supporting it for two days last month.

The peso`s loss in value comes amid a sharp rise in inflation, which private economists put at about 30 percent but the government says is about 10 percent.

First Published: Tuesday, February 4, 2014 - 01:37
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