The Government will apply the second on March 1st partial increase in taxes on liquid fuels (ICL) and carbon dioxide (IDC) which affect the price of a liter of petrol and diesel, according to the scheme established by the Ministry of Energy with decree 107.
The third month of the year will thus begin with a new increase in the tax on liquid fuels, which will be transferred to the pumps of the service stations of the various oil companies. Therefore, the liter of super petrol will increase by 32.63 dollars compared to current values and the diesel one by 21.12 dollars, i.e. an increase of 4.4% and 2.7% respectively.
This increase could be slightly greater if oil companies pass on to prices the 2% increase that the official dollar will experience in February, which is growing at this rate due to the “crawling peg” policy or scheduled sub-arms defined by the Central Bank.
Additionally, at the end of April and May, the fourth and final tax update will be applied which had been postponed several times from July 2021 during the previous administration.
With the new update that the Executive will apply to fuel taxes, the liter of petrol would increase on average by 4.4%. It remains to be seen how much of an increase the oil companies will apply in sales values at the pumps.
Therefore, in case YPF applied a 4.4% increase on current prices, the liter of super and premium gasoline would be as follows in the city of Buenos Aires (CABA):
Super petrol: from $744 to $777.
Premium petrol: would go from $918 to $958.
Fuel tax increases: what will happen in March, April and May
At the beginning of March the Government will update the amounts of taxes on liquid fuel (ICL) and carbon dioxide (IDC) which affect the price of a liter of petrol and diesel.
The schedule of increases is as follows:
The first increase was applied on February 1st
The second will be applied from March 1st and corresponds to the first two quarters of 2023.
The increase corresponding to the third quarter of last year will be set on April 1st.
The latest increase will arrive on May 1 and cover the fourth quarter of 2023.
On March 1, the fuel tax will increase for the second time, corresponding to the first two quarters of 2023. (Photo: Télam)
On March 1, the fuel tax will increase for the second time, corresponding to the first two quarters of 2023. (Photo: Télam)
Naphtha and diesel: what happened to January consumption after the increase
In January, fuel prices increased by an average of 6.5%. According to the latest report from the Ministry of Energy, in the first month of the year the consumption of petrol and diesel decreased by 5.76% compared to the same month of 2023.
While premium petrol plummeted, registering a decline of 22.67%. Due to the price difference, turnover in the YPF service station network increased by 2.89%. Those of the Shell oil company instead fell by 15.51%.
Source: Clarin
