Prices. Gasoline will rise again 4.4% and has increased more than 80% since Milei took office

Starting this Friday, fuel prices will rise by at least 3,8 % y 4,4 % at service stations due to the release of the Liquid Fuel Tax (ICL) and Carbon Dioxide (IDC). This adds up to a total increase of 80% since the assumption of Javier Miley in December, which is added to the previous increases during the end of the mandate of the Front of All.

The first gasoline adjustment was three days after Milei took office, with an increase of 37%. On January 3 it rose 26%, and on February 1, another 6.5%, which also included a tax update. These increases, added cumulatively, give a increase close to 80% since Decemberaccording to different specialists.

In addition to the increases in gasoline for the benefit of oil companies, the Government adds the impact of the increase in taxes, affecting the final price. He DNU 107/202published in the Official Gazette on the 1st of February, began “a regularization process” of the “remaining increases” that were frozen since 2021 for unleaded gasoline, virgin gasoline and diesel. This provides for an increase in the amounts of taxes set, corresponding to the first, second, third and fourth calendar quarters of 2023, which will be applied in March, April and May.

“The sincerity of the tax was defined in four stages, according to decree No. 107/24. On March 1, the second stage begins, with an increase in the tax of a fixed amount of $33, which raises the tax from $65 per liter to $98 , that is, an increase of 50%,” indicated the Argentine Institute of Fiscal Analysis. To this must be added what the oil companies apply “due to costs”, among others, the transfer of the rise in the official dollar, which is adjusted (for the moment) to the rhythm of 2% monthly. The real intention of the oil companies is to bring the local price to export parity, with the difference that salaries in dollars are sunk.

Under the assumption of full transfer of the tax increase to the final price, in March, it would imply going from a value of $858 to $891 in the city of Córdoba, that is, an increase of 3.8%,” Iaraf said. Meanwhile, for the City of Buenos Aires the increase would be “from $750 to $783”, that is, “4.4%”.

Thus, in the event that YPF applies a 4.4% increase on current prices, the liter of super and premium gasoline would be the following in the City of Buenos Aires (CABA):

Super gasoline: from $744 to $777.

Premium gasoline: it would go from $918 to $958.