Hello, and welcome back to the Latin America Weekly newsletter! In this issue: How Argentina plans to avoid energy shortages. The “win” AMLO scored in Mexico. And Nayib Bukele’s latest moves against drug gangs.
Argentina’s energy crisis finds relief in Brazil and Bolivia
Argentina’s policy of subsidizing domestic prices for electricity, gas, and fuel has become increasingly costly with the rise in international energy prices. And now, the gap between what Argentinians pay and the cost of imports has become too large for the Economy Ministry.
- In a letter to Economy Minister Martín Guzmán, Energy Secretary Darío Martinez warned that the country will “not be able to pay the liquefied natural gas (LNG) and diesel imports” it has signed up for — or incentives to domestic gas producers.
Why it matters. In order to avoid large-scale shortages, Argentina may have to turn to help from Brazil (with which relations have warmed up after a brief moment of discomfort) and Bolivia — and even that might not be enough to plug the gap.
Bolivian gas. With winter approaching and peaks in demand on the horizon, Argentina spent months looking to increase natural gas imports from Bolivia — a much cheaper alternative to...