Uruguay looks to liberalize fuel prices

Uruguay’s government wants to liberalize fuel prices starting in January, local paper El Observador reported.

Authorities propose that private sector firms set prices in the transport and retail markets, the report said, citing fuel transport association chairman Óscar Benavídez.

Currently, prices throughout the supply chain are regulated.

Under a wide-ranging bill passed in July, the government is given 180 days to propose a review of the fuel market, local paper El País said.

Energy and water regulator Ursea would establish price ceilings. 

During discussion of the bill, the government withdrew a proposal to scrap national oil company Ancap’s monopoly on importing fuel, which will be discussed separately, El Observador said.

Any proposal to end Ancap’s monopoly would likely generate opposition.

The bill also establishes a special commission tasked with analyzing the country’s pension system and drawing up proposals. Calls have been made to overhaul pension system rules on account of the country’s aging population and the impact that this will have on its old-age dependency ratio and, in turn, government finances.