Petrobras Uruguay Faces Threat of Fuel Supply Cut

The Fancap, the union of workers in Uruguay, threatened to cut the fuel supply for Petrobras stations in Uruguay and for an airport on Monday, May 6.

Petrobras announced the sale of refineries in Uruguay, and the measure resulted in layoffs in the country. The oil company controls two gas distributors in the neighboring country, MontevideoGas and Conecta, but intends to negotiate its exit from the country due to the fact that its operations are unprofitable; Petrobras invested US$ 112 million in the last 15 years, having a loss of US$ 116 million in the same period.

At the same time, the company is facing serious problems with local worker unions, which complain that Petrobras is seeking cost reduction through layoffs. Fancap, the union of workers at the state energy company of Uruguay (Ancap), in response, threatened to cut the fuel supply for Petrobras stations in Uruguay and for one unnamed Uruguayan airport.

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The decision aims to support workers from the MontevideoGas company, a subsidiary of Petrobras, who left the establishment after the announcement of the sale of 8 refineries and a network of gas stations in Uruguay on April 26.

Fancap is asking for the re-hiring of the 20 employees of the company and for the non-dismissal of the other 37 by this Friday, May 10, the deadline by which 16 of the 20 unemployment insurance for Petrobras employees will expire.

In a statement, the union expressed solidarity with the workers of Uaoegas (Unión Autónoma de Obreros y Empleados de la Compañía del Gás), who “have been facing the neoliberal policies of the Petrobras company, which attack the workers who are fighting dignifiedly to maintain their jobs and the public service of natural gas.”

According to Fancap, it was agreed “as a measure of struggle to cut the fuel supply to Petrobras (evaluating when to implement it, whether only for the airport or if it will include supplying gas stations).”

The government expects to raise R$1 trillion in 30 years with the exploration of four pre-salt blocks. According to Minister Bento Albuquerque of Mines and Energy, the proposal is to share up to 70% with states