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ANALYSIS: Peru's gasoline market shrinks as LPG use in cars rises
PLATTS
Lima
Petroleumworld.com 02 27 06
Peruvian gasoline consumption has contracted in recent years and is set
to keep falling as lower taxes for LPG and the start of production from
Camisea fields liquids has made it more convenient for many drivers to convert
their vehicles to run on the mix of propane and butane.
Peruvian gasoline consumption has fallen from nearly 25,000 b/d as
recently as five years ago to no more than 20,000 b/d currently, according to
several Peruvian market sources familiar with the situation.
All the sources project a decline of gasoline production in coming years.
One source from a leading gasoline retailer estimated the decline to about
16,000 b/d by 2012.
LPG consumption has increased from about 20,000 b/d before 2004 to about
30,000 b/d currently, sources said.
LPG use has been on the rise since production of LPG started at
Pluspetrol's Pisco plant on the southern Peruvian coast. The plant processes
gas liquids from the Camisea field in the southern Peruvian jungle, which were
developed in 2004. Before Camisea, Peru had to import LPG and shipping made
the cost of the fuel more expensive.
In addition, Peruvians pay a special tax on gasoline which doubles its
cost. There is no such tax on LPG sales.
Separately, gasoline prices have gained along with increases in
international crude prices while LPG local prices were little changed since
domestic production started.
The increase in LPG consumption has also been at the expense of kerosene,
which was previously the lowest cost alternative for cooking fuel, sources
said. Kerosene consumption in the country has fallen from about 8,000 b/d as
recently as 2003 to 2,000 b/d currently, sources said.
LPG use has also impacted diesel, but not as much as gasoline, because
some light industry uses the fuel. Consumption of diesel is set to remain
stable at about 40,000 b/d, the sources said.
Peru's main gasoline and diesel retailers are Repsol YPF, with some 30%
to 35% of the market; Primax, which is owned by Chile's ENAP and Peru's Romero
group and has a slightly smaller market share; and Peruvian group Pecsa in
third place.
The country's main LPG distributors are Solgas, owned by Repsol YPF, Zeta
gas which is Mexican-owned and Pecsa.
--Renzo Pipoli, renzo_pipoli@platts.comFor simliar news, request a free trial to Oilgram News at
http://www.platts.com/Request%20More%20Information/index.xml?src=story
Platts 26 02 07
Copyright© 2007 Platts. All Rights Reserved.
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