On May 1, gasoline and diesel prices will increase by 4% to 5%, with super gasoline in Buenos Aires expected to surpass $875 per liter. The rise is caused by a variety of factors including currency devaluation, refining company margins, and the postponement of fuel tax updates.
Despite the delay in updating fuel taxes until June, the price increase will still occur. This follows the refiners’ previous attempt to raise their margins between November and January but had to moderate the increases starting in February due to a shortage crisis.
Oil companies are currently facing a significant gap in diesel prices at the pumps and a considerable gap in gasoline prices compared to import parity. They are working hard to close this gap in order to recover their margins which have decreased since February. According to consulting firm Politikón Chaco, demand for gasoline and diesel has decreased by 12.1% year-on-year in March at the national level.
Overall, the increase in fuel prices is due to a combination of factors including currency devaluation, refining company margins, and the postponement of fuel tax updates. Despite these challenges, the industry is actively seeking ways to adapt to the changing economic climate and fluctuating fuel prices.