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Argentina registers fuel tax increase and its impact on prices is expected

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Buenos Aires, March 1 (EFECOM).- Argentine drivers have been waiting since this Friday for a new increase in fuel prices, another in the endless list of increases that Argentina will experience in March, in the midst of a serious inflationary situation in the country and a decrease in the purchasing power of salaries.

The update of the Tax on Liquid Fuels (ICL), defined by the Federal Administration of Public Revenues (AFIP), will surely impact the price of fuel, whose average increase is expected to reach 4%.

Fuel consumption in Argentina fell after the strong price increases since last December, increases that will continue due to the policies of the new Government of President Javier Milei for the hydrocarbon sector.

The Milei Executive is carrying out a liberation of the repressed prices of the economy and, in the case of fuels, seeks to bring them to levels more in line with international markets and more profitable for companies in the sector.

According to various sources in the sector consulted by EFE in February, fuel demand at gas stations fell by almost 10% in January, except for a slight increase in YPF.

The decline in consumption had already begun to be felt in December, with a cut of 7.8% compared to November, according to data from the Argentine Energy Institute ‘General Mosconi’.

In a context of very high inflation (254.2% year-on-year) and loss of purchasing power of salaries in Argentina, since the increases in joint negotiations are far behind the increase in the CPI, consumers cut their charges at gas stations after the strong price increases recorded in December, January and February.

Fuel prices have a strong impact on the costs of freight transportation, thermal electricity generation and agricultural logistics, among other activities, and, therefore, have a strong impact on the formation of electricity prices. economy in general.

This new increase is in addition to what, since the beginning of Milei’s management, on December 10, rates have been experienced in prepaid medical services, in public transport (buses and trains) and in taxis, as well as as well as the elimination of energy subsidies (electricity and gas). EFECOM

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