The intensity of the increase in fuel prices has already begun to impact the pumps. After staggered increases which – since November have exceeded 140% – Fuel sales have fallen 20% since the beginning of the year, depending on the petrol stations.
Clearly, the drop in volumes has hit “premium” fuels the most, which are – estimated and according to oil companies – 23% more expensive than super petrol or ordinary diesel.
In particular, the decline in volumes sold was also noted at service stations in the surrounding areas, like Mendoza or Misiones, where Chilean and Paraguayan motorists crossed the border to fill up, taking advantage of the cheapest price that had been available, up until now, in Argentina. A difference that, however, remains in the case of Uruguay.
“In this process of honesty on fuel prices, necessary because we came from frozen prices, we noticed a drop of 15% in the case of some oil companies and 20% in others, during the month of January,” explains Isabelino. Rodriguez, president of CECHA, the chamber that brings together service stations.
According to the entrepreneur, the trend is viewed with “concern” by the sector although they are confident that oil companies “will have to find a balance point” so that demand does not decrease, he considered.
In reality, this happened after the liberation of prices, caused by the market significant price differences between petrol stations, even from the same operator as some understand that while nearly $1,000 gasoline benefits the industry, it also hurts the rest of the industries and individual consumers.
This competition between brands has led to major fuel loading promotions, especially with virtual wallets. Thus, some oil companies that had applied the latest increase in their products compared to those of YPF, tried to reduce the differences with the national oil company, applying decreases in the order of 1%-2%.
Historically The price of fuel was around $1.20. Although most of the increases expected to reach this value have already been implemented, there are still some factors that could cause fuel prices to rise again.
Firstly, the potential transfer of the tax burden on petrol and diesel (ICL), which the previous Government had not passed on to consumer prices. This tax was last updated in the second quarter of 2021. And it expires on February 1, although it is not yet known whether the Government will reactivate this tax or not.
If the new government allows the transfer of the ICL on prices, a sum of around 2.8 billion dollars, that would have an impact between 10% and 11% in fuel values. On the other hand, the liberalization of regulations in the sector has eliminated the Creole barrel. The difference with the international price of crude oil therefore tends to disappear. That is, now the manufacturer will charge the refiner approximately the international value minus the cost of insurance, transportation, etc. “We understand that there may still be a readjustment there,” they say in the industry.
The other factors that may affect the increases and affect the pockets of motorists is a new devaluation of the peso and also the impact on the cut of biofuels in petrol, which is currently at 7% and the idea is to bring it to 15%. %, explained the head of CECHA.
Source: Clarin
