translated from Spanish: Reports weekly of variations of fuel prices

According to ENAP’s trade policy, L prices The products that are marketed are determined through the price of import parity using as a reference a near, deep and large-scale market like that of the American coast of the Gulf of Mexico (hereinafter, Gulf Coast). Additional to this, the freight cost is incorporated to Chile and other costs, typical of the import activity of refined petroleum fuels.
Therefore, the prices of ENAP wholesale correspond to the alternative cost of the importation of fuels, typical of an open market and competitive as is the wholesale market in Chile, without including neither costs nor margins of the distribution, unlike the That the National Energy Commission informs in its online information system of fuel prices in petrol stations.
Table 1 presents, for the week of 23 to 29 May 2019, prices and variations of oil-based fuels from ENAP to wholesale distributors. These prices incorporate the increase in the prices of petrol 93, diesel, kerosene and liquefied gas, as well as a decrease in petrol 97, product of the movements registered in the international market of the Gulf Coast, from Monday 6 to Friday 17 of May of 2019, reference period for calculation.
Likewise, the prices of ENAP and its variations consider the application of an average contractual exchange rate of 5 days for its clients of $692.7/USD, greater in $7.0/USD with respect to that applied by ENAP for the calculation of prices of the previous week.

(*) Prices include SONACOL pipeline transport fee from Concón to Maipú, $7.6/lt, FEPP application, specific taxes, MEPCO and VAT.
(**) Price of LPG in bulk in Concón, includes only VAT. For the purposes of the application of the fuel price stabilization mechanism (MEPCO) This value is adjusted considering the transport rate in SONACOL pipeline from Concón to Maipú ($6.3/lt) and the specific tax of LPG for vehicular use: 1.400 UTM per cubic metre. Regarding the specific gravity used to convert the price of $/kg to $/lt. Its value is 0.518 kg/Lt.
The previous week began with the establishment of new tariffs by China on goods from the United States, in response to the act of the latter country in the midst of the trade war.
In addition, tensions in the Middle East increased after Saudi Aramco reported an attack by unidentified drones to two pumping stations, so the company was forced to stop some of its operations To identify possible damage. The sense of scarcity in the markets continued until the end of the week, even though the U.S. Department of Energy (DOE) reported new increases in crude oil inventories in that country. The disruptions in Saudi Aramco’s operations, in addition to economic sanctions on Iran, led to a major concern about global crude oil inventories.
Finally, the increase in the military presence in the Persian Gulf by the United States, increased the concern of an escalation in conflicts between the two countries.
In turn, DOE’s weekly report accounted for an unexpected increase in crude oil inventories in that country of 5.4 million barrels (MMb) (+ 1.2%), which placed them in 472 MMb. In addition, this Department reported that the inventories of petrol decreased by 1.1 MMb (-0.5%), while those of diesel increased by 84 Mb (+ 0.07%).
In addition, the weekly report by Baker Hughes announced that the operation of the oil rigs in the United States fell by three units, at 802.
Table 2 shows variations in ENAP prices and the distribution of these in two components: the effect of exchange rate variation on the one hand and the combined effect of variations in international reference prices , the FEPP, MEPCO and taxes, on the other:

(*) Prices include SONACOL pipeline transport fee from Concón to Maipú, $7.6/lt., FEPP application, specific taxes, MEPCO and VAT.
At the time of the indexing period for next week, gasoline and intermediate prices have experienced an increase in the international Gulf Coast market. At the close of this report, Brent ICE was traded at 70.7 US $/bbl in the London Intercontinental Exchange, lower than $0.36 per barrel (US $/bbl) at the average of the reference week for the calculation.
Note: Through these reports and their website, ENAP seeks only to provide relevant background for the fuel market. This report can in no case be considered a document that determines, fixes or defines references or values for wholesale prices or prices to the final consumer in the Chilean market, those that are completely free, given their condition of open market, Competitive and deregulated.

Original source in Spanish

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