News
Jun-28-2022
PETROPERÚ reiterates that its prices do not include cost overruns
PETROPERÚ reiterates that its prices do not include cost overruns

In relation to journalistic versions regarding the fact that the high sales prices to the final consumer are due to cost overruns or additional margins considered by PETROPERÚ in its list prices in Supply Plants, we inform:

1. There are four relevant agents that produce or import Gasolines/Gasoholes to supply the national demand; Likewise, at the wholesale level, there are up to seven predominant agents in the market. All of them, like PETROPERÚ, set their sales prices based on their respective price policies and commercial discounts.

2. Although it is true, PETROPERÚ as a wholesaler through its Supply Plants has an important participation in the Gasoline/Gasoholes market; it does not determine the price to the final consumer. It is important to highlight that PETROPERÚ does not have its own Service Stations (faucets). The network identified with the PETROPERÚ brand corresponds to private service stations affiliated with the company, but which set their prices freely, as indicated by the current regulatory framework. Therefore, it is not correct to state that PETROPERÚ determines the sale prices to the final consumer.

3. Likewise, sales of 95 and 97 Gasolines/Gasoholes at its Supply Plants represent only 7% of PETROPERÚ's total fuel sales in the domestic market. It should be noted that the determination of the PETROPERÚ list price is influenced. On the one hand, by the upward trend in international prices, and, on the other, by the country's tax burden. In addition to this, we find the free price policy of the service stations, part of the chain in which PETROPERÚ does not participate as it does not have its own taps. Due to the above, it is not correct to indicate that the construction of the New Talara Refinery (NRTL) is being financed with the sales of these fuels.

4. We specify that, for the NRTL, there are specific financing sources, which will be paid with the incremental future flows that the operation of the new plant will generate, given that cheaper crude oil will be processed and more valuable products will be obtained with low sulfur content, significantly increasing the Company's economic results.

5. Regarding the comparison of Gasoline prices to the final consumer (taps) with other countries, the differences are due to tax policies and specific subsidies in each country, as indicated on the GlobalPetrolPrices website, a source cited by various media outlets:

Link: https://es.globalpetrolprices.com/gasoline_prices/

6. In relation to Chile, the prices of 97 and 93 octane gasoline to the final consumer are subsidized by the Fuel Price Stabilization Mechanism (MEPCO), as established in Resolution CVE 2144265 of 06.15.2022 of Ministry of Energy of the Chilean government. In Peru, the situation is different because these gasolines are not included in our Fuel Price Stabilization Fund (FEPC).

7. Regarding the prices to the final consumer in our country, OSINERGMIN provides, through its FACILITO application (www.facilito.gob.pe), information on the sale prices of Gasolines/Gasoholes at Service Stations. According to this source of information, the prices at the taps, being free, vary. Thus, on 06.27.2022, the lowest price for Gasohol 90 is located at a tap in the Comas district with 19.19 soles/gallon and the highest price is 26.15 soles/gallon in San Juan de Lurigancho. As for Gasohol 95, the lowest price is 22.50 soles/gallon at a tap located in Carabayllo and the highest price is 29.49 soles/gallon in San Juan de Lurigancho.

8. Due to the above, there are several agents in the market that participate in the fuel supply chain with their own commercial policies and strategies used to compete in the national market. Likewise, PETROPERÚ is one more wholesale agent that supplies the market at its Supply Plants, but does not participate in the rest of the retail chain since it does not have its own faucets, so it does not determine the prices for the final consumer. Consequently, we reiterate that it is not true that tap prices are raised due to alleged margins added by PETROPERÚ.