The Government has taken this measure with the objective of not adding more pressure to inflation. According to a high-ranking source at the Ministry of Economy, “There will be no increases in May. “We want to consolidate the decline in inflation and maintain a good surplus.”
The Government plans to publish a Decree in the Official Gazette to defer the date on which the update corresponding to the fourth quarter of 2023 of the Taxes on Fuels and Carbon Dioxide for unleaded naphtha, virgin naphtha and diesel, as of June 1, 2024.
Regarding energy rates, the National Electricity Regulatory Entity (ENRE) and the National Gas Regulatory Entity (ENARGAS) have not yet published the tariff tables corresponding to next month. Official sources have commented that they are evaluating the magnitude of the increases and how to implement them, after the considerable increases registered during the first quarter in electricity, gas, water and public transportation.
The Government intends to apply the new subsidy scheme in June. However, the suspension of these increases has generated concern in the sector, since it could affect the payment chain, especially in relation to the debt of the electricity generators with the Wholesale Electricity Market Administration Company (Cammesa).
The decision to postpone the increases responds to the need to find a balance between the reduction of subsidies and the impact on the pockets of the population. In this sense, the Government continues to work on the implementation of measures that ensure fiscal sustainability without negatively affecting the most vulnerable sectors.
