In Uruguay The recent economic measures announced in Argentina, especially regarding the fuel pricedue to the impact it may generate on domestic market sales and tax collection, in the midst of a situation that is already complex for the coast, particularly, but also for the entire national economy.
He Exodus usual for Uruguayans towards Argentina It is no longer a novelty, and fuel is one of the main products that motivate the crossing of borders. Even despite some measures that were taken in the neighboring country to discourage purchases by foreigners, such as a 35% differential in the price at the pump and even a sales cap —at certain service stations, 20 liters— for vehicles with foreign license plates.
In this context, local authorities are already looking with concern at what may happen with the recent provision announced by the Argentine government, in the figure of the Minister of Economy and presidential candidate, Sergio Massa.
In this regard, this morning Massa announced that the increase in taxes will be postponed until February 1, 2024. taxes that impact the price of gasoline, an increase that was planned for this month and that, after a new expansion, will prevent these products from becoming more expensive beyond the inflation —and, in turn, will prevent the increase from being reflected in inflationary indices.
The measure reaches unleaded gasolinethe virgin naphtha and the gasoil; and aims to ensure the stabilization and adequate price evolution in the midst of the economic crisis experienced by the neighboring country, and after overcoming a fuel shortage over the weekend.
How will this impact Uruguay?
As well as Uruguay have the more expensive fuel of the region —$1.47 per liter of diesel and $1.95 per liter of gasoline—, according to the energy report prepared by SEG Engineering; Argentina On the other hand, it is the cheapest: $0.99 per liter of diesel and $0.87 per liter of gasoline.
To this base difference is also added the difference generated by the exchange difference that exists between both countries, which makes gasoline a 193% more expensive in Leap what in Concordia (Entre Ríos), while diesel is a 290% more expensive on this side of the border. Even considering the discount on the Specific Internal Tax (Imesi) that fuels have on the coast, as well as the 35% differential charged by Argentine service stations.
In this scenario, the postponement of the increase in fuel taxes in Argentina continues to deepen the price gap in the sector, despite the fact that, at least for November, gasoline and diesel will remain frozen in Uruguay. In the best of cases, the situation will remain unchanged, something that, in any case, is not encouraging.
In this sense, it must be remembered that the tax collection of the General Tax Directorate (DGI) It has three consecutive falls – as of August – and an accumulated decline in the year of 2.1%, driven mainly by the fall in consumption taxes: VAT and Imesi. Regarding the latter, mainly due to lower fuel sales in the border departments, the drop as of July was 1.5%; In August, the accumulated annual sick leave had already reached 5.3%.
The impact can also be seen directly in the sales of coastal service stations: they sell only 40% of usual —according to August data, prior to the historical peaks of the Dolar blue in the neighboring country—due to the exchange rate difference and the significant price gap on one side and the other of the border.
Along the same lines, sales of the National Administration of Fuel, Alcohol and Portland (Ancap) between April and May they were even lower than at the worst moment of the Covid-19 pandemic. An example that shows the seriousness of the situation that the coastal departments are going through also in this area, deepened by the recent devaluations that were experienced in Argentina.
Source: Ambito
