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Gasoline increases, but the recession slows increases of more than 30%

2024-02-28T12:03:54.867Z

Highlights: This Friday, March 1, fuel taxes will rise, in a monthly schedule that will continue until June. The oil companies want super gasoline at $1.20 per liter, but they are losing sales due to the crisis. Fuel sales at service stations fell 5.8% year-on-year in January, as a result of double-digit declines in all brands except YPF. S.N. estimates that revenue from the fuel tax would jump from $526 billion in 2023 to more than $3.8 trillion this year.


This Friday, March 1, fuel taxes will rise, in a monthly schedule that will continue until June. The oil companies want super gasoline at $1.20 per liter, but they are losing sales due to the crisis.


This Friday there will be another increase in gasoline and diesel throughout the country

, on the occasion of the

scheduled increase in internal fuel taxes

.

The impact on prices will have a

ceiling of 3.9% in the City of Buenos Aires

, since it is the place where the cheapest values ​​are (with the exception of Patagonia, where the tax is not paid).

However, on March 1, oil companies could take the opportunity to add the

devaluation

of the peso against the dollar (2% monthly) and transfer the recent increases in

biofuels

.

And the refiners are waiting for the moment to recover the "delay" that they claim they have in relation to a "parity."

According to qualified sources in the sector,

super gasoline should be around 1.20 to 1.23 dollars per liter

.

With the current values ​​in the City, $744 in YPF or just under $0.90,

the gap is above 33%

.

An important anchor, in this sense, is the

depth of the decline in economic activity

this summer.

Fuel sales at service stations fell 5.8% year-on-year in January

, as a result of double-digit declines in all brands except YPF, which continues to eat up the market from the rest by having prices between 3% and 5% cheaper .

Recession moderates inflation

According to what executives of the refineries said, the Minister of Economy,

Luis Caputo, asked the companies at the end of January to moderate the pace of increases

, in order to show inflation in sustained decline.

Between the October elections and February 1, fuel prices rose between 175% and 200% , with a

shortage

crisis

in between.

The increase in gasoline and diesel is part of a monthly schedule in which taxes were partially unfrozen, which had not been updated since October 2022.

The increases will continue until June, inclusive

.

This time, as reported by Economía at the beginning of February, the gross increase will be $32.89 per liter of gasoline and $31.64 for diesel;

but since both products are mixed with biofuels - which are exempt -, the net impact will be $28.94 and $29.27, respectively, according to the tables published by the

Federal Public Revenue Administration (AFIP)

.

In April there will be another gross adjustment (without the biofuel discount) of $34 and in May, of $70, corresponding to the inflation update of the tax, which should now be applied in March.

Finally, in June the scheme should be finalized with the transfer of inflation from the first quarter of this year.

A report from the

Argentine Confederation of Workers and Employees of Hydrocarbons, Energy, Fuels, Derivatives and Related Products (CATHEDA)

estimated that

revenue from the fuel tax

would jump from $526 billion in 2023 to more than

$3.8 trillion. this year

, which would add the equivalent of about 0.5 percentage points of the Gross Domestic Product (GDP) or

10% of the fiscal adjustment proposed by the government of Javier Milei

.

S.N.

Source: clarin

All business articles on 2024-02-28

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