The government had postponed for the third time in the year this update which was to take effect in mid-September and had postponed it to October 1. At that time, the argument for not updating the price focused on the fact that “in the case of consumption taxes, and since the demand for liquid fuels is highly inelastic, the variations in taxes are transferred practically directly to the final prices. of fuels”.
As explained by the official this will be the first increase in a series that should occur to reach the appropriate tax level. The rise corresponds to the first two quarters of 2021. There are still the two finals from last year and the three that have already passed in 2022, which are equivalent to a delay close to 20%.
The Government had postponed the decision due to the strong inflationary pressure, in a pandemic context. According to a calculation by private consultants specialized in fuels, the State stopped collecting nearly US$1.8 billion in this way.
In the last twelve months up to August, gasoline had accumulated an increase of 32% and diesel of 51% (41.7% on average between both fuels), well below the annual inflation of 78.5%.
The sale of fuel shows a sustained drop in recent months, with which this new increase alerted the owners of service stations who feel the drop in collection. From the Confederation of Hydrocarbon Trade Entities of Argentina (CECHA), They reported a drop in sales in July compared to the previous month and had pointed to the lack of energy policies, inflation and trampled prices, among the main causes. The total volume of liquid fuels sold in the Argentine retail channel was reduced during July 2022 by 3.1%with falls in 18 of the 24 provincial jurisdictions.
Source: Ambito
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