Gas stations are losing profitability: the Aconcagua Radio issue

In the program Hermoso caos (Beautiful Chaos) onAconcagua Radio , they spoke with Isabelino Rodríguez , president of the Mendoza Association of Gasoline and Related Retailers (Amena) and the Confederation of Hydrocarbon and Related Trade Entities of the Argentine Republic (Cecha) . The conversation provided insight into the current situation of service stations and how their profitability has declined, which translates into job losses.

—How are prices going? Because over the weekend, with the whole mess in Israel and Iran, we had skirmishes with the rise in oil prices, crude oil, and some companies went out of their way to raise them, like Shell and Puma, which increased by 5%. Now there's a significant gap between YPF's prices, for example, and those of Shell. How do you see this?

— Well, we see it as part of the geopolitical dynamics of this war skirmish. When everything was seemingly geared toward a long process, Trump came out and said the war was over. And that caused the international price of crude oil to drop 5% in one day. So we're watching what happens in that international context to see how prices behave.

—Could it be that Shell and Puma, which quickly rose, will see their values ​​fall?

—And… that's a strategy for each oil company. We're the last link in the marketing chain, so that decision is completely beyond our control. But it obviously has an impact on what happens internationally.

—We sometimes joke about how, for example, YPF announces with great fanfare that it's reduced its price by 3%, and then they keep increasing it. Isn't that funny?

—The thing is, fuel prices are made up of international variables and the tax burden the government authorizes to be transferred to the price. The equation isn't simple, and that's why these fluctuations occur. That's why these ups and downs occur.

—When are we going to stop being surprised, then, if everything is going to be so fluctuating?

—The massive armed conflict, which has had so many consequences, leads to these things. YPF lowered prices 40 days ago and hasn't raised them yet, but it's surely watching what's happening internationally. But taxes and these things are influencing fuel prices. Even if you look at it closely, fuel prices have grown below inflation. Inflation in 2025 grew by around 11.8%, and fuel prices by around 5.5%. That is to say, there is clearly also a state policy, at least in the tax aspect, that seeks to generate less inflation from a macroeconomic perspective.

—How is the consumption situation?

—Consumption declined sharply last year, and that created a profitability problem at our service stations. We saw a rebound of approximately 2% in April and May, and we're trying to see if that signal becomes a trend. Now comes this whole international situation, and we'll have to see how it impacts.

—And have there been any gas station closures lately?

—There have been several closures at CNG-only stations in Mendoza. What we're seeing is a profitability issue for these stations, and this is obviously due to a consumption issue or the business's lack of profitability. The main cost for service stations, 60%, is staff. And staff, in general, have had their income adjusted by the CPI through collective bargaining agreements, and fuel prices have fallen well below that variable.

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