One month from General elections If a new increase is approved, it could have a direct impact on prices with accumulated inflation of 32.27%, far from the initial perspective that the Ministry of Economy had in the 2021 Budget.
May 15 was the last increase in fuels in the order of 5%. But that fixed scheme for the whole year, as expected, did not include a clause that warns of the steps to follow in the event that international values skyrocket. This gap discourages investments in the sector in addition to pressure towards an increase in price.
Already on September 15, the President of YPF, Pablo González, confirmed that the oil company will not apply increases in fuel prices for the remainder of the year, despite the decoupling that exists between the international and local price of a barrel.
“We have a domestic price of oil that is well below the international price. We are making a lot of effort to sustain the sale in the domestic market at $ 55 a barrel. If we transferred the international price to the domestic market, today the liter of gasoline would be au $ s1.50, “explained the head of the oil company in the framework of the Promotion Law at Hydrocarbon Investments.
After the increases in the first quarter of the year, YPF promised to freeze prices at the pumps. “We have been doing it with a lot of sacrifice, but there has been no shortage and in this the companies have collaborated, not without problems, because it is very difficult “González admitted.
The secretary of Energy, Darío Martínez was consulted by C5N about this situation and acknowledged that there is an increasing pressure: “Although the price of fuel is defined by the producers -refiners-, the government is always tense so that this relationship has to do with the pocket of the Argentines and that the oil companies will have to understand, “he said.
“It is a permanent tension. The oil companies are always going to tighten up and we are going to tighten down because there has to be a relationship with the pocket of the Argentines that can bear. We cannot be looking at the international price permanently,” Martínez explained after highlight that “there is no margin to go to the international price of crude in any way. “
Consulted by Scope, Gabriel Bornoroni, President of FECAC (Federation of Fuel and Related Dealers of the Center of the Republic) expressed his opinion in this regard: “There is a delay of 10% to 12%, it has been four months that fuels have not been updated and the influence it has the price of fuels and updates in the Consumer Price Index and inflation. Inflation continued and fuel prices have been frozen for four months. “
“Everything that is not updated now is going to cause damage to the industry, to energy, and later we do not have energy and we have to import it. It is harmful for us and for Argentines. Afterwards we have to pay a much higher cost.“, he concluded.
David William is a talented author who has made a name for himself in the world of writing. He is a professional author who writes on a wide range of topics, from general interest to opinion news. David is currently working as a writer at 24 hours worlds where he brings his unique perspective and in-depth research to his articles, making them both informative and engaging.
