The Government once again extended the update planned for the tax on liquid fuelspassing it on to the next July 1, as anticipated Scope.
The decision was made through the decree 168/2023 published this Friday in the Official Gazette, with the aim of “ensure a necessary stabilization and an adequate evolution of prices“.
“When it comes to consumption taxes, and since the demand for liquid fuels is highly inelastic, variations in taxes are transferred practically directly to the final prices of fuels”, indicated the decree.
That is why he stressed that “it is reasonable to postpone for unleaded naphtha, virgin naphtha and diesel the effects of the increases in the amounts of the tax”.
from a modification in 2018the Fuel Tax foresees updates to your lump sum in January, April, July and October of each year on the basis of the inflation variations of each preceding quarterly period, seeking, in this way, cushion fluctuations in the dollar or in the price of crude oil that were previously referenced.
This is the seventh postponement of the application of increases of the tax from 2021 to date.
In the last moment the only update that was made of this tax was in October of last yearat which time the pending increases for the first and second quarters of 2021 were applied, which implied a fuel adjustment between 1% and 4%, depending on whether it is gasoline or diesel.
It is still unknown what the pattern of fuel increases will be in effect from next month: at the end of last November, the Ministry of Economy agreed on a guideline of increases with the oil companies of 4% in December, 4% in January, 4% in February and 3.8% in March, in line with the increases foreseen within the Fair Prices program for food and other consumer goods.
Inflation shows an acceleration since December and in February it reached 6.6% per month.
Source: Ambito
