A decrease has been reported in the number of gas stations owned by the state company, which in 2011 began an aggressive expansion plan in the country.
The perception that gasoline is of poor quality and that management of the business has not been the best, are two of the reasons to which, in part, the reduction in the number of gas stations owned by Alba Petróleos has been attributed.
Alba Petróleos de El Salvador, daughter company of PDVSA, is no longer importing from Venezuela the fuel it sells in the country, doing so instead from the United States.
EDITORIAL
Removal of market rules in order to achieve political objectives, always has an inevitable expiration date.This is what is happening with the alleged exportation of the so-called Bolivarian revolution, through Venezuela's contribution of oil and its derivatives to economies with apparently similarly minded governments.While it is true that the current Maduro government still has the loyalty in diplomatic terms of some Latin American and Caribbean governments, which has prevented his condemnation through international organisms, in the economic sphere relations with these allies are cooling off without remedy.
It has been announced that $20 million will be invested in the opening of 14 new outlets, raising the company's stake in the Salvadoran gas station market to 20% .
With the entry into operation of the new stations the number of outlets operated by the Venezuelan company in El Salvador will increase to 65.
Julio Villagran, head of corporate communications, told Diariocolatino.com that "...
An analysis states that bureaucratic obstacles may discourage the entry of new competitors in a market moderately concentrated.
From a statement issued by the Superintendency of Competition:
SC Updates Study on Liquid Fuel Sector
After completing in June 2015 the "Update of the sectoral study on competition in the market for liquid fuels" prepared by the Economic Administration of the Superintendency of Competition, the Board of Directors of the authority issued recommendations aimed at promoting economic efficiency and welfare of consumers in this market.
The Superintendency of Competition has approved a request made by the company in January 2014 to acquire eight gasoline stations in the country.
From a statement issued by the Superintendency of Competition in El Salvador:
The Board of the Superintendencia de Competencia (SC) resolved to authorize the application for a merger between Alba Petróleos de El Salvador de SEM de CV resulting from the purchase of eight service stations.
They are demanding from the government more transparency in the management of fuel purchases and more information on how the market will be organized with the participation of the Venezuelan entity.
The Chamber of Commerce and Industry of El Salvador has expressed concern about the interference that Petrocaribe and the Venezuelan government could have on El Salvador and has asked the government for greater transparency about how fuel imports will be handled once the agreement enters into force.
The company, part of the ALBA Petroleos conglomerate, has become the main supplier of grain to agribusinesses.
This was confirmed by Oscar Albanian, general manager of ALBA, adding that they are maintaining a reserve of 50,000 tons of basic grains, through a contract with the company Precocidos de El Salvador.
ALBA Alimentos buys the product "from domestic farmers and then processes it into different distribution channels, local and external" reported Laprensagrafica.com. For the 2014 harvest, the company expects to produce between 2.1 million hundredweight of beans, corn and rice.
Gasoline distributors are concerned about Petrocaribe's recommendation that the Salvadoran government be the sole manager of oil imports.
An urgent appeal to the Government for it to call together companies from the sector and clarify the implications of El Salvador's entry into Petrocaribe, has been the reaction of the distributors of domestic fuels, in light of statements by representatives of Alba Petróleos suggesting that the government should establish an entity to manage the purchase and import of hydrocarbon derivatives purchases.
There is still no official information about whether brand name distributors will be able to keep importing fuel from their source of choice.
The request for entry into the oil agreement with Venezuela marks the economic and political differences between the outgoing government of Mauricio Funes and that of the new President Sanchez Ceren, indicating a higher affinity for the conglomerate led by Venezuela.
The company owned by Venezuela and a group of municipalities from the ruling party continue to diversify; now they sell water and finance housing projects.
The Alba business conglomerate announced through José Luis Merino, Alba Petróleos advisor and coordinator of the ruling FMLN party, that it is to add a new business to those already it established in El Salvador since it came into the country in 2006.
Under discussion in the Salvadoran Congress is the application of equal fiscal controls and management for private companies and those made up of mixed capital.
Public-private companies should be subject to the same controls and audits as those consisting of 100% private capital, because lack of transparency in controls of some of them and excess controls in others affects competitiveness and economic development.
The company was fined $759,924 for failing to petition the Salvadorian Superintendency of Competition to approve to purchase of nine service stations.
In addition to the financial penalty, the Superintendencia de Competencia (SC) demanded that the company submit within 30 days an application to follow the procedure which should have been done in the beginning.
The strategies for El Salvador to enter into Petrocaribe include the creation of a state run company for importing and marketing petroleum products.
Elmundo.com.sv reports that "José Luis Merino , FMLN leader and senior advisor to Alba Petroleos in El Salvador, says the party does not have an agreement model to join Petrocaribe, in the case that they win the presidential election next year. "
Three stores are part of proposed investment of $40 million, which also includes agricultural production and materials for farming basic grains.
The first sales area for Alba Supermarkets will open in two months and will be located in an annex of the gas station in the town of Quelepa, San Miguel. There "... the company will sell basic grain produce along with groceries, meat and staples of various domestic and foreign brands at different prices", reported Elsalvador.com.
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