The Argentine government will implement a partial increase in fuel taxes starting May 1, in a context marked by the volatility of international oil prices and internal inflationary pressure.
Tax adjustment on gasoline and diesel
According to the decree published in the official gazette, the gasoline tax will increase by 10.398 pesos per liter, corresponding to the tax on liquid fuels. This adjustment is in addition to an additional increase of 0.637 pesos related to the environmental tax.
In the case of diesel, the tax burden will increase by 9,269 pesos per liter for the same reason; for the Patagonian regions, a differential rate of 5,019 pesos is established. Likewise, the carbon dioxide tax will add 1,056 pesos per liter.
Government’s gradual strategy
Furthermore, the authorities decided to postpone some of the planned increases until June; this measure seeks to moderate the immediate impact on final prices and avoid a more pronounced acceleration of inflation.
The gradual approach responds to the need to balance tax revenue with economic stability, in a scenario of high sensitivity in energy costs.
Pressure from the international oil market
The tax adjustment comes amid a significant increase in global crude oil prices. The price per barrel has surpassed $126, reaching multi-year highs.
This market behavior is associated with geopolitical tensions in the Middle East and the risk of supply disruptions, factors that directly affect energy import costs.
Impact on Argentina inflation
Similarly, monthly inflation in Argentina reached 3.4% in March, driven in part by rising fuel prices. Passing on international prices to the local market remains one of the main challenges for economic policy.
In this context, the increase in fuel taxes is part of a broader strategy to manage the external impact on domestic prices, without neglecting the country’s fiscal needs.
Source: Reuters
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