Due to energy purchases, imports reached record figures during June

Imports of liquefied natural gas (LNG) soared due to international energy prices (REUTERS / Issei Kato)

The INDEC will release tomorrow the numbers of the commercial exchange of June. But according to official sources, the figure will be around USD 8.6 billion, 45% more compared to the same month last year and 9% more compared to May 2022the previous month, where it had reached USD 7,870 million.

The increase in June was driven by larger purchases abroad of fuels and lubricants, which went from USD 1.6 billion to almost USD 2 billion. This was also anticipated by the president of the Central Bank, Miguel Pescein weekend radio statements.

“We are with very high levels of energy imports, about USD 2,000 million per month, 25% of the monthly total, which brings us some stress in the foreign exchange market” (Pesce)

“We are with very high levels of energy imports, about USD 2,000 million per month, 25% of the monthly total, which brings us some stress in the foreign exchange market, that is why we ask importers to finance the increase in imports to 180 days. And we are achieving a positive effect, USD 3,200 million have already been obtained”, assured Pesce in dialogue with radius10.

“We hope to save the difficult situation of these months due to energy imports with this financing and in August when energy imports drop, we will not need so many resources,” he added.

If you take the data on the import of liquefied natural gas (LNG), for example, last year a total of 56 ships were imported for an amount of USD 1,096 millionat an average price of USD 9 per million BTU (the unit of the sector). This year, a total of 41 boats have already been tendered for USD 2,884 millionwith an average price of USD 29 per million BTU, due to the strong increase in fuel prices that intensified with the Russian invasion of Ukraine.

Miguel Pesce, president of the Central Bank
Miguel Pesce, president of the Central Bank

According to private estimates, energy imports this year could reach USD 9.9 billion. In addition to LNG and diesel, foreign purchases also include Natural Gas imported from Bolivia and fuel oil. This figure could leave a negative balance in the trade balance of USD 6,109 million.

During the month of May, according to the latest data published by Indec, the demand for Energy imports reached maximum levels, due to the sectoral deficit and record international prices, which influence the equation in terms of both prices and quantities.

According to the detailed report, the imports of fuels and lubricants soared 226.7% year-on-yearfor instance. In May, increases in purchases of liquefied natural gas (USD 580 million); diesel (USD 152 million); monoammonium phosphate, including mixed with diammonium phosphate (USD 123 million); natural gas in gaseous state (USD 121 million); and fuel oil (82 million dollars), among other increases.

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