Argentina postpones the increase in taxes that affect fuel prices until 2024

The Argentine Government postponed until February 1, 2024 the update of taxes on unleaded and virgin diesel and gasoline (gasoline) that impact prices and that were to be applied this month, as published in an Official Gazette.

According to the publication, the freezing of the Tax on Liquid Fuels (ICL), “a mechanism by which the State does not increase its participation in taxes so that gasoline does not increase further”As explained by the Argentine Minister of Economy, Sergio Massa.

“We assign State resources, we stop collecting taxes so that gasoline does not increase more than it should”The official candidate for the Argentine Presidency also indicated in a virtual appearance.

Massa considered the critical moment experienced this weekend due to the shortage in the domestic market to have been overcome thanks to the “warranty” given by the oil companies, although he added that we will have to be careful so that, on the basis of increasing their profit by exporting a little more, they do not harm the consumer.

The minister again attacked the oil sector, which, despite the benefits it perceives for imports and the exchange rate difference for exports, “It appeared with a shortage of ‘stock’ and now it has suddenly been able to replenish all service stations”.

“In the last few hours we heard requests for an increase of 40%, 20%, 10%, far above the reality that a sector of the big winners of the Argentine economy needed in order to continue investing”commented the head of the Treasury Palace, who insisted that “That cannot happen at the expense of the Argentinians’ pockets”.

Will waive tax collection if necessary

The candidate of Union for the Homeland (Peronism) to the Argentine Presidency indicated that it will resign the collection of taxes from the national State if necessary to improve price competitiveness and that it will be firm, if necessary, “so that there are no abuses in the domestic economy”.

The main refinery operating companies in Argentina assured yesterday that the supply of fuel in the domestic market, which has suffered significant shortage problems in recent days, has begun to normalize.

“Supply is normalized throughout the country”they stated in a joint statement YPFcontrolled by the Argentine State, the American Axion Energythe Switzerland Trafigura and Raizen (partnership between Shell and Grupo Cosan), all with refineries under their control.

They pointed out that the pace of dispatch from the refineries was increased and a special truck distribution scheme was implemented that allowed the usual supply of fuel to increase by between 10 and 15%.

In addition, imported fuel provided by five ships has already been added and the arrival of two more ships is expected.

With information from EFE.