MARKETING
Latin America

Repsol YPF currently markets products through 3,437 service stations, under several different brand names, mainly YPF, Eg3 and Repsol, depending on the country. The sales policy followed in these countries is the same as that for Spain, and is intended to obtain a sufficient profit margin.

Repsol YPF has 48% of all service stations in Argentina. This percentage includes the 11.6% Eg3 market share. The total number of Repsol YPF sales outlets is 2,986. There exists a commitment with the Argentine State to reduce the number of service stations that in all, represents the 1998 Eg3 sales volume for naftas and diesel products. In order to fulfil this commitment, a possible swap of downstream assets in Argentina for downstream and upstream assets in Brazil is being negotiated with the Brazilian company Petrobras.

Marketing activity grew considerably in Latin America during 1999, mainly as a result of the YPF contribution from the end of June 1999 onwards. With respect to Peru and Ecuador, sales to own marketing increased 44.1% as a consequence of growth in the service station network, and direct sales.

Repsol YPF also has 86 service stations in the United States.

Selling prices are free in the Latin American countries where Repsol YPF markets its products, with the exception of Ecuador where both refinery and service station prices are regulated.