The Minister of Economy, Luis Caputo, decided that electricity and gas rates will not have increases due to inflation starting in July, although the portfolio will continue with work to define a new monthly indexation mechanism starting in August. The increase in the fuel tax (ICL) scheduled for next Monday will also be deferred, like May and June. This was confirmed to Infobae by sources from the Treasury Palace.
The government does not want to jeopardize the slowdown in inflation, which could have been halted in June, so it will move forward with postponing increases in sensitive areas for consumers. Obviously, this implies greater future pressure on retail prices.
In the next few hours, the Executive Branch will publish a decree in which it will defer the increase in the ICL scheduled for next Monday, as happened in May and June. From July 1, the tax increase will result in an increase of only 1% in the final prices of gasoline and diesel, much less than the 18% expected, as Infobae was able to confirm with official sources.
The decision taken by Caputo is not only about guaranteeing the path of disinflation. The fiscal surplus achieved until May and the prospects of sanction in Congress of the norms that will allow greater collection (Ley Bases and fiscal package) give more air to the Treasury, published Infobae.
Delays in the ruling party’s projects or a possible legislative failure would be compensated with, among other adjustments, greater increases in the ICL as committed by the Ministry of Economy to the International Monetary Fund (IMF).
In any case, the oil companies -YPF, Axion, Shell and Puma- could transfer the 2% corresponding to the monthly devaluation of the peso to the suppliers so as not to fall behind international prices. Since Javier Milei took office, fuel prices have jumped by more than 110% on average, so part of the freeze that Alberto Fernández’s management maintained was recovered.
“Companies collaborate with the Government to increase as little as possible because the improvement in macro stability serves them more than anything else,” explained an official who talks a lot with the refiners.
