Govt. to increase fuel, electricity prices

Uruguay's government plans to raise energy and fuel tariff increases during the first week of June in response to low hydrological levels and high international oil prices, newspaper La República reported. Fuel prices could rise 4%, while electricity prices could go up 8%, the paper reported. President Jorge Batlle is scheduled to return from a summit in Mexico on Sunday and will meet with government officials on Monday to discuss the increases, the paper reported. The fuel price increases will depend on the projected international oil price, he said. "We have acted with the necessary prudence, without hurry, to see what we have to do, when we have to do it and how we'll do it." In terms of electricity, the industry ministry and officials from state power company UTE have been meeting with Argentine and Brazilian officials and "we have been resolving the problems with respect to the supply of electricity and gas," the President said. Rains are expected in July, which should help fill the Negro River reservoir and avoid serious power shortages in the upcoming winter, he added. Meanwhile, Batlle ruled out restrictions on energy use, and considers that the Argentine idea of turning the clocks back an hour to take advantage of more daylight hours is "unviable," the paper reported. Batlle plans to meet with his Argentine and Brazilian counterparts in Mexico to discuss a long-term solution to the region's energy crisis, and bring up the possibility of UTE establishing an electrical interconnection between northern Brazil and the Salto Grande dam.