Fuels rise more than 25% in Argentina near the inauguration of Javier Milei

Oil companies in Argentina prices of goods rose by an average of 25% fuelsclose to the day he takes office as president Javier Mileiwho is expected to take measures that impact the energy market to order the strong macroeconomic imbalances that the country is dragging.

The Raízen oil companylicensee of service stations Shellwas the one that took the first step by increasing fuel prices by 15% and was then followed by the oil company controlled by the Argentine State YPF and with the largest portion of the market, which increased by 25% on average.

With this new increase, fuel prices have accumulated three increases since November – another two of 10% each – since the ‘Fair Prices’ program agreement expired, agreed between the oil companies and the Government during the presidential campaign in which the Minister of Economy, Sergio Massa, was the official candidate, in the context of inflation that runs close to 150% annually.

The far right Milei He will take office this Sunday as president for a period of four years and is expected to apply economic measures that may impact the official exchange rate and, therefore, the value of fuel.

The “virtuous process of expansion of hydrocarbon production, growth in exports and decrease in imports, was accompanied by a significant delay in energy prices in the local market, a process that worsened in recent months as a consequence of the acceleration in the pace of currency depreciation,” explained the latest report from the consulting firm Economía & Energía.

Gasoline prices in Argentina They are 21% below the regional average and those for diesel are 1% above the average, said Economía & Energía.

”We should aim for free fluctuation, without the indirect control that the Government currently exercises in the market through YPF. Once price balance has been achieved with export parity, a compensatory fund will be implemented to mitigate increases and reductions in international prices that would impact the domestic price, of the type that exists in Peru,” said the future Secretary of Energy of MileiEduardo Rodríguez Chirillo, to the specialized media Surtidores.

Rodríguez Chirillo stressed that once this tool is put into practice, the adaptation of the market will be an easy and quick solution, and “in the meantime” the future Government will evaluate “the convenience and regulatory possibility of regulating with the tax burden.”