Unless there is any definition to the contrary of the Minister of Economy, Luis Caputostarting next Friday, March 1st, the value of The tax on the sale of fuel will increase 50% compared to the current amount. They will be $33 per liter compared to the current $65, which may impact the final price by 4.4%.
In the last days Companies in the sector were speculating on the possibility that the update of this tax would be delayed again.which actually corresponds to a delay in the amounts that should have governed from the first and second quarters of 2023.
Because it is a tax by a fixed sum per liter, the oil companies will be left in the dilemma between passing the new cost on to their clients or absorb the impact and maintain prices. Hence the rumor about a possible postponement. But in the government there is no one who has endorsed that chance at the moment.
The previous increase in fuel prices took place in the last week of January and it did not have a major impact on inflation for the month although it did not take the entire period from the first.
Fall in sales
In January, period with significant increases in values, Some 1,466,485 cubic meters of fuel were sold throughout the country, including gasoline and diesel.
Sales showed the most significant contraction since February 2021with 5.8% compared to the same period in 2023. Compared to December, the drop was 7.5%, says the Politikon Chaco report.
The study specifies that only in the case of gasoline consumption fell 6.3%. But if you look at the details, ltopremiums fell 22.7%, while the super rose 0.1%.
Defrost decree
He Decree 107/2024 of January 31 sets the defrosting of the Fuel Transfer Tax (ITF) and Carbon dioxide (IDC), which had been quiet since last year.
A schedule was determined that begins in March, for the first and second quarters of 2023; the third from April 1st and the fourth quarter of last year, from May 1st.
He Argentine Institute of Fiscal Analysis (IARAF) points out that “this update corresponds to the inflation of the first quarter of 2023”
“There are two stages left, in April and May, then, at the end of June it should be updated according to the INDEC CPI inflation for the first quarter of 2024. And so on, according to the tax legislation,” explains the private report.
The IARAF indicates that “considering the value of a liter of super gasoline, this update of the tax (under the assumption of full transfer) It would mean going from a value of $858 to $891 in the city of Córdobathat is, an increase of 3.8%, while in CABA would go from $750 to $783, increasing by 4.4%.”
The report indicates that taking into account the honesty of the tax and the additional increases determined by the oil companies, it is interesting andassess the evolution of the real value of the liter of super gasoline in CABA since January 2018 until now at February 2024 prices.
“Regarding the minimum value of the series in October 2023, the price currently increased by 54% in real terms,” estimate the report.
The IARAF adds that “comparing the maximum value of the series in October 2018, the current value is 27.5% lower.” while “comparing the minimum value with that of January 2024, an increase of 65% in real terms was observed.”
Source: Ambito
