Shell Slashes Diesel Prices in Paraguay Amid Falling International Costs

Shell has announced a significant reduction in the prices of both common and premium diesel at its service stations, effective Wednesday, June 24. This price adjustment will see the cost of common diesel fall by as much as G. 730 per liter, bringing it down from G. 8,930 to G. 8,200. Premium diesel will also see a decrease of G. 550 per liter, moving from G. 10,650 to G. 10,100.

This move marks one of the first substantial reductions in diesel prices following a period of widespread increases that began with the conflict in the Middle East. While some brands have offered promotions on gasoline, the diesel price drop is a notable development for consumers.

Néstor Visendaz, CEO of Raízen, the licensee for Shell in Paraguay, explained that the company aims to pass on international market improvements to its customers. However, he cautioned that the energy industry is highly sensitive to global geopolitical and economic events, and future price movements will depend on these variables. "When international market conditions allow, we seek to transfer that improvement to our customers," Visendaz stated.

The price reduction coincides with a decrease in international heating oil prices, which serve as a reference for diesel. The international price of heating oil saw a decline at the start of the week, with futures markets in New York showing drops. This easing of geopolitical tensions in the Middle East has reduced crude oil volatility globally, contributing to the lower fuel prices. The indicator closed Monday at 305.69 cents per gallon, a nearly 21-cent drop from the previous week.