Private sector claims it won't be able to compete with Petropar's LPG prices

Capagas, the Paraguayan Chamber of Commerce for Petroleum Gas, claimed state-owned Petropar will not be able to sell Liquified Petroleum Gas (LPG) at its announced price of US$8.81 per 10kg canister (ABC). Capagas Vice President Ausberto Ortellado argued this price (which is 30 percent below current market rates) would not cover costs and is untenable unless subsidies are introduced. Mr. Ortellado claimed Petropar had not factored administrative costs into its estimations, and had therefore arrived at an unrealistically low estimate of the price at which it can sell LPG. He also voiced concerns that public perception of private sector providers will suffer as a result of Petropar selling LPG at a vastly reduced rate compared to its private sector competitors.