translated from Spanish: Weekly report of variations in prices of fuels

According to the commercial policy of ENAP, the prices of the products marketed are determined by the price of parity of import using as reference a market close, deep and large scale as the American coast of the G olfo of Mexico (hereinafter, the Gulf Coast).
In addition to this, incorporates the cost of freight to Chile and other costs, own import of refined fuels from oil activity.
Therefore, the prices of ENAP to the wholesale correspond to the alternative cost of imported fuels, typical of an open and competitive market such as the wholesale market in Chile, excluding neither costs nor the distribution, unlike margins of the that informs the National Energy Commission in its information system online prices of fuel at service stations.
Table N ° 1 arise, for the week of 7 to 13 February 2019, prices and variations of fuels derived from oil of ENAP to distributors. These prices include the decrease in prices of gasoline 93, 97 gasoline, diesel, kerosene and liquefied gas, product of the movements registered in the international market of the Gulf Coast since Monday, January 21 to Friday, February 1, 2019 , reference period for the calculation.
Also prices of ENAP and its variations considered the implementation of a 5-day average contractual exchange rate for clients of 666,67/us $, lower at $6.88 /USD with respect to the ENAP applied for the calculation of prices of the previous week.

(*) prices include transportation pipeline SONACOL from Concon at Maipú, 9.0 $/ lt, the application of the FEPP, specific taxes, MEPCO and VAT rate.
(*) price of LPG in bulk in Concon, only includes VAT. For the purposes of the application of the mechanism of stabilization of prices of fuels (MEPCO) adjusts this value considering transportation pipeline SONACOL from Concon at Maipú ($6.3 /lt) and specific LPG for vehicle use tax rate: 1.4 UTM per cubic meter. With respect to the specific gravity used to convert the price of $ / kg to $/ lt. its value is 0,518 kg/Lt.
The previous week ended under a context in the International Monetary Fund (IMF) which pointed out that the world economy would grow by 3.5%, 0.2% less than projected in October 2018. The reports pointed out that such economic weakness was mainly due to existing trade frictions between the United States and China.
In addition, the United States International Energy Agency (EIA) predicted that by 2020 this country exports would increase in 1.2 MMbd while its imports would be reduced.
The production cuts by OPEC and its partners policy came into effect at the beginning of January and so far has reached 80% compliance, which has meant to remove from the market 900 Mbd, reaching a production level of 30.9 MMbd. Anyway, the Organization would be evaluating further reduce production levels during the next six months. In this context, the Minister of energy of Saudi Arabia, Khalid Al – Falih, it realized that this country reached a 10.3 MMbd production during January and this would of 10.1 MMbd during February.
As for the sanctions imposed by the United States to Petroleos de Venezuela Sociedad Anónima (PDVSA), these affect the exports of State-owned in 500 Mbd. However, analysts noted that U.S. oil companies not would be affected, since they would replace imports from Venezuela for crude of Mexican and Canadian origin.
Table N ° 2, presents variations in prices of ENAP, and the distribution of these two components: the effect of the variation of the exchange rate, by one hand, and the combined effect of the variations in international prices of reference , the FEPP, MEPCO, and taxes, on the other hand:

(*) prices include transportation pipeline SONACOL from Concon at Maipú, $9.0 rate/Lt., the application of the FEPP, specific taxes, MEPCO, and VAT.
Already elapsed period of indexing for the next week, gasoline and intermediate prices have experienced an increase in the international market of the Gulf Coast. At the end of the present report, the ICE Brent transaba to 62,57 US$ /bbl on the Intercontinental Exchange in London, lower at US$ 7.12 /bbl the average of the reference week for the calculation.
Note: Using these reports and its web site, ENAP seeks only to provide relevant data for the fuel market. This report cannot be in any case considered a document which determines, fixed or defined references or values for the prices wholesalers or prices to the final consumer in the Chilean market, which are completely free, given its open-market condition, competitive and deregulated.

Original source in Spanish