The University of Salto price indicator once again confirmed why Uruguayans cross the border to buy fuel.
The currency gap With Argentina, it continues to hit the Uruguayan economy, which loses consumers from the coast because they increasingly choose to buy from the other side of the Silver riverand the fuels They are not an exception to the rule, being that Uruguay It is the country that has the most expensive fuels in the region.
According to him Border Price Indicator of the Economic Observatory of the University of Saltoin the last report of January, the price difference is still above 100% compared to the prices of Argentinaa phenomenon that began to grow as of 2018. As for gasoline, on the Uruguayan side the price is a 146.8% more expensive than in Argentina, while diesel surpasses it even more with a 191.2% value more expensive than in the neighboring country.
According to the consultancy SEG Engineering, Uruguay has the most expensive fuel in the region, being Argentina the cheapest. While in the country the value of diesel is 1.51 dollars, in Argentina it is 1.11, in Paraguayan 1.23, in Chili 1.48 and in Brazil, $1.18. Regarding gasoline, in Uruguay the price is 1.84 dollars, in second place is Chile with 1.65, in third place, Paraguay with a value of 1.27 dollars, followed by Brazil with 0, 99 and, finally, Argentina with 0.97 dollars.
What can the government do?
The mayor of the coastal department of Paysandú, Nicholas Olivera, expressed, in an interview with scope.comthat one of the possible solutions, regarding the purchase of fuels from the other side of the border, and that was taken many years ago is the fuel tax reduction. This would allow a drop in gasoline and diesel prices, tempting the population to buy fuel from the Uruguayan side.
However, Olivera stressed that it is a situation that has been happening for many years and not only with fuel, but with many other sectors. According to the mayor of Paysandú, something that went from being temporary ended up being something structural and stable that destabilizes the economy of the communities along the country’s coast.
Source: Ambito
