This instrument will be applicable to refining companies that are subject to Taxes on Liquid Fuels and Carbon Dioxide, according to decree 329/2022, published in the Official bulletin.
According to the provisions, companies that have the quality of domestic suppliers of grade two or grade three gas oil with respect to their production capacity of that fuel, with full use of their installed refining capacity, may adhere to the Regime.
Also, they can add the “Small Refineries of Affected Regions” (according to the official text) located in regions “with insufficiencies of internal supply of gasoil higher than the national average for reasons related to their geographical position.”
Likewise, the subjects adhering to the Regime may request an amount equivalent to the amount they must pay as Taxes on Liquid Fuels and Carbon Dioxide for diesel imports.
The Secretariat of Energy will be the authority for application of the Regime and may issue explanatory and complementary regulations that are necessary for its proper functioning.
The Executive Branch justified this decree by pointing out that “The complex global energy situation has generated a growing escalation in international prices, affecting the affordability of energy resources, especially in developing countries.”
In that sense, he indicated that one of the problems facing the Argentine hydrocarbon industry “is the structural insufficiency of the local refining capacity to fully supply a growing demand, both industrial and from the automotive fleet.”
This situation, according to the Casa Rosada, “It has been aggravated by the progressive decline of key conventional basins for the supply of strategic regional refineries and by the trend reduction in the average density of crude oil produced, with its consequent effect on the productivity of refineries adapted to heavier crude oils”.
“The incremental supply with respect to the capacity of the national refining complex implies increasing costs that affect the normal supply of domestic fuel requirements, creating excess demand in different regions of the country”he pointed out.
Therefore, he considered it necessary to “promote measures to guarantee incremental supply and compensation for extraordinary costs in the international context and growing demand, as a result of the recovery of the Argentine economy.”
Source: Ambito
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