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Biofuels rise and will push another increase in gasoline prices

2021-02-28T23:22:19.865Z

The 12th also increases the tax component. Until now, the oil companies have always transferred it to the amounts paid by consumers.



Martin Bidegaray

02/28/2021 17:49

  • Clarín.com

  • Economy

Updated 02/28/2021 5:49 PM

Starting this Monday,

oil companies will have to pay more for the biofuels

with which they cut their products.

That amount - decided by the Executive Branch - will be reflected in the price of fuel, which will

increase from Monday.

The question is whether the increase will include only the transfer of biofuels or will also be used to improve margins for companies.

Biodiesel to be used by oil companies rises 3.6%.

As it is used in 10% of the mix, that would impact

0.36% of the price of diesel.

In the case of alcohol for naphtha, it rises by 1.9% and is used in 12% of the mixture.

The final increase to the consumer is 0.2%.

The Government

does not want more increases

in the price of fuel.

But in addition to the correction for biofuels, there is also an increase in the taxes paid on these products, which will be from March 12.

Until now, the oil companies

- led by YPF

- have never stopped transferring their cost increases to final prices.

In this way, on Monday there should be a first remarking, to adjust for biofuels.

The doubt of the sector is whether YPF will take advantage of this rise to make an

improvement in its refining margins

.

The price of a barrel of Brent crude oil is on the rise and that will impact consumer amounts, as it is one of the main costs.

The combination of the increase in two costs (biofuels and taxes) will force the oil companies to make some adjustments.

The pumps are expected to reflect part of that on Monday.

"The logical thing would be an increase of 2%, boy, that reflects the weight of biofuels, serves a little margin improvement and is already correcting the tax issue," suggest stationers consulted.

YPF is the main player in the sector and its steps set the pace of its competitors.

"Even without transferring the price of Brent, there is no possibility of not transferring the higher costs to prices. The margins are very finite and YPF's accounts do not allow it much to relax about it," says a competitor.

YPF could also make a single increase now, which brings together biofuels, taxes and improved margins.

But, in that case, the increase could be above 2%.

The discussion comes in the middle of the government's negotiation so that companies

do not raise their prices beyond the annual guideline

(29%), and that wages beat inflation.

In a meeting last Thursday, mass consumption companies accused logistics, transportation and the rising cost of diesel as one of the main factors that were putting pressure on their costs.

In the industry they say that YPF will be conditioned by the electoral calendar.

During election months, the oil company will freeze its prices.

To do this, you should apply previous increases to avoid being pressured to that instance.

Look also

Why gasoline increased (and will continue to increase) so many times this year

Despite the quiet dollar, inflation and rising unemployment put limits on the rise in consumption

Source: clarin

All business articles on 2021-02-28

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