Gasoline and diesel hike: New prices apply at outlets across the country

Petrol and diesel prices have again increased across the country from midnight today. The increase, which is a response to the increase Fuel Tax Liquids (ICL) And on transfer of devaluation, it will be 3.5% percent on average.

Thus, Super Gasoline, which cost $870 Autonomous City of Buenos Aires (CABA)The cost came to about $900.50 per liter. Premium gasoline, for its part, jumped from $1,074 $1,111.50,

As for the diesel, the price of the regular version stopped at $918 and began selling at a price of $950.10 approx, while the premium version, which costs $1,167, is sold out to date approx $1,207.80.

It is important to clarify that the prices mentioned are CABA compliant only and reflect the lowest prices found across outlets in that region of the country.

In other parts of Argentina prices vary and are generally higher. In addition, it is expected that the magnitude of the increase will vary by region. Even within CABA there are usually differences within the region among service stations of the same brand.

Looking to sidestep the recessionary path of inflationthe government again postponed the update of the ICL that was originally scheduled to come into effect last Tuesday and postponed most of the increases until July. This is why the average increase in fuel starting tonight is 1.5 percentage points due to the tax component and 2 points due to the decrease in the official exchange rate. In the search for companies to maintain their stable prices in dollars,

Updated quarterly based on variation in fuel tax Consumer Price Index (CPI) of Index accumulated in the previous period. The Government of Alberto Fernandez It was frozen from mid-June 2021 to December 2023.

In May, a 53% increase in the ICL was due to be applied due to the accumulated inflation of the last quarter of 2023, which Caputo postponed until June and is now being postponed again, and in July a 56% increase was due to be applied. The CPI of the first quarter of this year. Decree 466/2024 indicates a small increase from today but focuses on the strongest increase in next month. That is why the transfer of the tax component to suppliers in July could be up to 18%, as defined in the latest official increase path.

In an unfavourable context for the service station sector, characterised by a sharp drop in sales and cuts in CNG supplies, the business entities agreed with the labour union on a wage hike for employees.

As reported from the Surtidores site, this is an increase of 12 percent for the month of May, non-remuneration, only for the purpose of the employer fee to the State that will become basic in July. In this way, a beach operator will receive a basic amount of $705,931.02 this month, plus a non-remuneration figure of $84,711, to which additional amounts must be added if applicable.

The wage reform corresponds to the collective agreements of the Confederation of Hydrocarbon Trade Entities (SECHA), the Federation of Fuel Entrepreneurs of the Argentine Republic (FECRA), the Service Station Association (AES) and the Federation of Fuel Entities (FEC).

In this way, it is expected that sooner or later the wage adjustment will also be transferred to outlet prices, as has happened on other occasions. It should also be remembered that the national government issues fuel prices, so companies may implement new increases even before the next ICL increase comes into effect.