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Last day to load gasoline before the increase: an increase is expected due to tax defrosting

2024-01-31T16:30:12.022Z

Highlights: Last day to load gasoline before the increase: an increase is expected due to tax defrosting. It is estimated that the Government could apply gradual increases in taxes that have been frozen since April 2021. The increase could be around 10% at the pumps. Motorists continued to line up to fill up on gasoline, hoping for once to beat the increases expected from Thursday. Since November alone, gasoline prices have risen more than 150%. And if considered year-on-year, the increase also exceeded general inflation.


It is estimated that the Government could apply gradual increases in taxes that have been frozen since April 2021. The increase could be around 10% at the pumps.


Motorists continued to line up to fill up on gasoline, hoping for once to beat the increases expected from Thursday.

On February 1, the freezing of two taxes on fuel that the previous Government had been extending since April 2021 will end. It is estimated that the current administration will lift the suspension, although, as it turned out, the update of prices at the pumps

It won't be all at once.

Until now, both the oil companies and the business owners who own the service stations had not confirmed the increase, although they indicated that

it was “highly probable” that the increase would be applied.

The market

estimated that the increase could be around 11%.

Thus, a liter of super gasoline would go from $699 to $775 at YPF pumps, while the value of premium gasoline would rise from $862 to $956. Always taking the values ​​seen in the City of Buenos Aires.

Usually, increases are communicated at the last minute, precisely

to avoid the “logistical complication”

(due to queues of motorists) that occur after rumors of new price increases.

Consumer caution is justified:

since November alone, gasoline prices have risen more than 150%

.

And if considered year-on-year, the increase also exceeded general inflation.

When asked about this, one of the oil companies commented: “We still don't have anything official for now.

We understand that they are going to update the tax, although in part;

not all

.

“ We are

waiting for the decree

. ”

YPF has the cheapest gasoline on the market: $699 per liter of super.

Photo Guillermo Rodriguez Adami

At another oil company they stated: "We have to wait for the Ministry of Economy to decide what it is going to do with taxes. For now,

the tax burden has always been transferred to prices

, so, if there is an increase, it will be transferred in that percentage".

The situation derives from a freeze that taxes on liquid fuels (ICL) and carbon dioxide (IDC) had for two and a half years, when Alberto Fernandez's management made that decision to contain

increases at the pumps.

Then, in November 2023, former Economy Minister Sergio Massa extended the measure again, expiring on February 1.

This is a fund that already accumulates some US$3.6 billion.

Now, it is estimated that the impact on fuel prices will be 11%.

Although some sources in the sector consider that perhaps the tax will not be transferred completely.

When consulted another source from the energy sector analyzed: “Decree 567 of October 2023 determined that the adjustments from the third quarter of 2021 to the 3rd quarter of 2023 will take effect as of February 1, 2024. If the executive does not say anything,

the “AFIP would have to increase these two taxes

,” he surmised.

On the other hand,

the Executive Branch can partially increase or extend the tax again

.

"If you maintain the current update formula, it would not be convenient for you, since it would involve taking the last quarter of 2023 where December already has 25.5% inflation, resulting in the adjustment being heavier if you continue to postpone it, unless you determine a formula different adjustment, but unfortunately at the moment we have no news,” he explained.

NE

Source: clarin

All business articles on 2024-01-31

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