Chile import data at Cybex.in disclosed Chile's average LPG imports from the US to be 135,000 tons per month. Since 2018, this value has only increased because of the negligible retailers and competitors in Chile's LPG market. As the demand for LPG has increased up to 80 % in Chile, Fiscalia Nacional Economica has decided to improve the market conditions by aiming at the competition. Not only this but to alert the primary traders in the LPG market, FNE also announced that the competitive conditions are not optimal.
Reasons for the decline in the LPG market
According to few reports gathered by the foreign trade data expert at Cybex.in, it has been concluded that FNE had its reasons to create an alert. Indeed, FNE justified one of the reasons to be very high concentration level. It also pointed out that limited economic groups in the market hold complete control of the natural gas and LPG market via assets.
The governmental organization also moved the spotlight towards vertical integration in the industry. Vertical integration is a supply chain plan where companies do not give direct control in the hands of suppliers, retailers and distributors. Even though vertical integration has proved beneficial for companies before, Chile LPG market has been facing a very high degree of this plan. As a consequence, the entire supply network has become inefficient.
FNE further also investigated the inconsistencies of LPG price rate in the market. Inconsistencies such as a very high price in one region and meager price rate in the other. Different brands of LPG are being sold at an independent price rate. In some cities, it has been concluded that the same distributors are selling gas at different rates to different customers.
Chile LPG Import Data: Overview by Cybex.in
In 2018, Chile's domestic gas consumption was 80% in the form of LNG. Later in 2019 Argentina export data disclosed export of 26,746 Tcal of gas by pipeline. Other exporters also included the United States, Tobago and Trinidad. According to Chile import data, 3 largest LPG suppliers are Gasmar, Hualpen, and Oxiquim.
Since 2010, Chile has been completely dependent on the United States for LPG. Argentina lent a helping hand in 2018 to provide LPG and LNG through pipelines. In 2021, Chile has been consuming and importing LPG at lesser volume than expected. For Chile Import data analysis and further forecast, subscribe to Cybex.in - 100% original global trade data provider.