Por Helen Hernandez
Both the Government and the President of YPF, Pablo González, affirm since May passo that there will be no increase in gasoline until 2022. However, stationers are in negotiations and press for prices to be updated. From the Federation of Fuel Entrepreneurs of the Argentine Republic (FECRA) they maintain that there is a 30% lag in the value of the product and they estimate that in December there will be an increase.
The controversy between the parties returned to take center stage after the CEO of the national oil company, Sergio Affronti, declared this Wednesday 10 that “they are evaluating introduce price adjustments during the next months ”.
Faced with these statements, González was cautious and avoided confirming when a new rise will occur. “There is nothing definite about the increases in gasoline. No increase is confirmed ”, assured the executive.
The president of YPF, Pablo González, has affirmed since May that there will be no increase in gasoline until 2022.
Pablo González, head of YPF, said that “no increase is confirmed” in fuels
Fuel price gap
On the first of December, the update that by law must be made of the taxes on fuels: the Tax on Liquid Fuels (ICL) and the Carbon Dioxide Tax (IDC). The two tax charges have been previously extended, so if they are fully updated, they will generate an increase in pump prices. close to 8% or 9%.
Hernán Landgrebe, Secretary of FECRA, stated in dialogue with PROFILE that “due to the increase in crude oil and the official dollar faced by oil companies, only in the product there is a gap of 20%”. He explained that the total lag -taking the levies- would be 30%, and without taking into account the update that they have been asking for from service stations.
“I think there is going to be a gradual and monthly honesty. The truth is that we do not want there to be an increase because sales have fallen a lot, but there is a long delay in the value of jets”, Indicated Raúl Castellanos, Secretary of the Chamber of Fuels Entrepreneurs. In this order, both union members agreed to point out that the stationers are going through a bad time, with levels below those of 2019 prior to the pandemic.
Price freeze
The last increase in fuels was on May 16. Since then, the YPF leader maintains that there will be no increases for the remainder of the year. “From González’s statement it should be inferred that, if there is any increase in the tax component, which is obviously not the power of the company, it will absorb the increase so that it is not reflected in the pumps,” said Castellanos.
Although the head of the state oil company assures that it is not a price freeze, stationers responded “that prices were not legally frozen but indirectly since the oil company marks the slate for them ”.
Controversy over the announcement of a “new record” for oil production in September
In this order, Lagarde said that they are waiting for what will happen in the coming months, since the situation is unsustainable. “Even for the oil companies the issue of frozen prices is a problem. In Argentina we do not have full supply and there is a lot of imported product that comes with international values. If this situation continues, the work for the oil companies will be very difficult, and there yes, supply may be affected”.
At the moment, there is a tug of war between the parties for the value of fuels. The truth is that until the legislative elections pass, the slates will continue the same.