The Government of Argentina ordered this Saturday to postpone an increase in the price of fuels, a measure that seeks to give an “immediate” response to the “situation”, marked by the recession and high inflation.
This is the third time that Alberto Fernández’s Executive postpones a rise in the values of gasoline, frozen since last December.
The measure was adopted through a decree bearing the signature of Fernández and published this Saturday in the Official Gazette.
“It is appropriate, in this instance, to provide a new deferral of the increases in the amounts of the tax on liquid fuels,” says the decree.
The Executive had for the last time postponed this increase at the end of last January, when it arranged that the update would be made from March, but now the Government decided to postpone it until April.
In the decree, it is alleged that the decision to postpone the increase is due to “the need to provide an immediate response to current circumstances and to stabilize fuel prices.”
The retail prices of gasoline are affected by the tax on liquid fuels and variations in the international price of oil.
Last year, in a context of strong depreciation of the Argentine peso and high inflation, fuel prices in Argentina increased on average by about 42%.
Fuel values are a key variable that impacts the calculation of costs of industrial and service sectors and, therefore, the general prices of the entire economy.
In 2019, the accumulated inflation rate in Argentina was 53.8%, while in January consumer prices increased 2.3%.
Official data for February will be released on March 12.
Industry analysts estimated that, had a new postponement not occurred, fuel prices would have increased in March by 2 to 6%.
In the decree published this Saturday, the Argentine Government confirmed that it continues to “comprehensively analyze the update of the amounts of taxes” that govern fuel “for its future adaptation.”