August 27, 2019 / 8:42 PM / 5 months ago

Argentina's YPF says peso weakness, fuel price freeze, poses risks

BUENOS AIRES, Aug 27 (Reuters) - Argentine state-controlled oil company YPF said on Tuesday that the recent depreciation of the peso and freezing of fuel prices had increased the risk of expenses outpacing revenue.

In mid-August, President Mauricio Macri froze fuel prices for 90 days, among other measures, to avoid further jumps in the inflation rate after the shock result of the country’s Aug. 11 primary vote sparked a collapse of the peso currency.

Business-friendly President Mauricio Macri got thumped in the primary. His center-left rival Alberto Fernandez is now favored to win the presidency in the Oct. 27 general election.

Savers dumped the peso in favor of the U.S. dollar after the primary. The local currency is down 22% against the greenback so far this month.

“YPF will seek to limit the impact generated by this situation by adapting its supply chain and prioritizing the continuity of essential projects for the growth of the company,” YPF said in a statement.

“The company will adapt contracts for goods and services based on the new scenario generated by the price freeze,” it said. (Reporting by Jorge Iorio and Walter Bianchi; Writing by Hugh Bronstein Editing by Tom Brown)

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