On Wednesday, May 1, oil companies in Argentina will increase gasoline and diesel prices by 4% to 5%, with super gasoline in Buenos Aires expected to cost above $875 per liter. The rise is due to a combination 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 increase in prices at the pumps is still set to occur. The refiners had previously adjusted their margins between November and January but had to moderate the increases starting in February. This comes after a shortage crisis in November led to a sharp rise in gasoline prices.
The oil companies are currently facing a 10% gap in diesel prices at the pumps and a 29% gap in gasoline prices compared to import parity. They are looking to close this gap to recover their margins that have fallen since February. The demand for gasoline and diesel has decreased by 12.1% year-on-year in March at the national level, according to consulting firm Politikón Chaco.
Overall, the industry is looking for ways to adapt to the changing economic climate and fluctuating fuel prices despite these challenges.