Last day to load petrol before the increase: an increase expected for the tax defrost

Motorists continued to queue to fill up, hoping for once to beat the increases expected from Thursday. The freeze on two fuel taxes that the previous government extended from April 2021 will end on February 1. It is estimated that the current administration will lift the suspension, although, as it turned out, the update of prices at the pumps It won’t be all at once.

So far, both the oil companies and the entrepreneurs who own the service stations had not confirmed the increase, although they had indicated it It was “highly probable” that the increase would be implemented.

In the market It is estimated that the increase could be around 11%. Thus, a liter of premium petrol would go from 699 to 775 dollars at the YPF pumps, while the value of premium petrol would rise from 862 to 956 dollars, again taking the values ​​observed in the city of Buenos Aires.

Usually increases are communicated at the last minute, in fact to avoid “logistical complications” (due to queues of motorists) which occur after rumors of new price increases.

Consumer caution is justified: Since November alone, petrol has increased by more than 150%. And when looked at on an annual basis, the increase even outpaced overall inflation.

When asked about it, one of the oil companies commented: “For now we still don’t have anything official. We understand that they will update the tax, even if only partially; not all. We are waiting for the decree.

At another oil company they said: “We have to wait for the Ministry of Economy to decide what to do with taxes. For now, the tax burden has always been transferred to pricestherefore, if there is an increase, it will be transferred to that percentage.”

The situation derives from the freezing of taxes on liquid fuels (ICL) and carbon dioxide (IDC) for two and a half years, when Alberto Fernandez’s management decided to contain increases at the pumps. Then, in November 2023, former Economy Minister Sergio Massa extended the measure again, which expires on February 1. It is a fund that already accumulates around 3.6 billion dollars.

Now, the impact on fuel prices is estimated to be 11%. Although some industry sources believe that perhaps the tax will not be fully passed on.

Another energy sector source analyzed when asked: “Decree 567 of October 2023 established that the adjustments from the third quarter of 2021 to the third quarter of 2023 will come into force from February 1, 2024. If the executive says nothing, AFIP should increase these two taxes“he speculated.

On the other hand, The executive power can partially increase or extend the tax again. “If you keep the current update formula, it is not convenient for you, since it would imply taking the last quarter of 2023 where December already has inflation of 25.5%, with the result that the adjustment will be heavier if you continue to postpone it unless we determine a different adjustment formula, but unfortunately we have no news at the moment,” he explained.