In order to contain inflation, the Government decided to postpone the increases in electricity and gas rates, scheduled for July, which were to be made by an index linked to the evolution of prices. The increases were to represent an additional impact of between 2% and 3% for households, businesses and industries.
At the same time, the Minister of Economy, Luis Caputo, decided to move forward with an increase in fuel taxes, which will translate into a 1% increase in the price of gasoline and diesel as of July 1. As happened in June, the tax update is partial, given that the entire inflation transfer from the first quarter would have meant a 12% jump in the value of gasoline.
The official decision to postpone increases in gas and electricity rates seeks to moderate the impact on inflation, then in June the increases in gas prices and the beginning of the removal of subsidies for the middle and low sectors added points to the CPI .
The companies affected by the new postponement include Edenor, Edesur, TGS, TGN, Metrogas, Naturgy, Camuzzi, Ecogas, which had previously agreed to periodic adjustments with the Executive under a monthly indexation formula. However, this system will be re-evaluated with a perspective that incorporates projected future inflation. The latter is what was postponed again.
The Energy Secretariat headed by Eduardo Rodríguez Chirillo had already decided that the increase in winter gas costs would be assumed by businesses, industries and high-income users, while progress would be made in the gradual removal of subsidies for low- and medium-income users. income. In the same way, he did it at the beginning of June with electricity rates.
The Government partially updates the fuel tax
The Ministry of Economy decided to move forward with an increase in fuel taxes, which will translate into a 1% increase in the price of gasoline and diesel starting July 1. As happened in June, the tax update is partial, given that the entire transfer of inflation from the first quarter would have meant a 12% jump in the price of gasoline.
In addition to the increase in the price of gasoline and diesel due to taxes, there will be whatever the oil companies decide to pass on to prices: it is estimated that they will at least rise to compensate for the 2% monthly devaluation and the rise in the cost of biofuels, so that prices at the pump will increase by around 5% or 6% starting on Monday, July 1.
Sources from the Energy Secretariat emphasized that the remaining increase in fuel taxes exceeds $100 per liter of gasoline and $80 for diesel, and will be applied throughout the second half of the year, starting in August.
TN
