Argentina’s Economic Minister, Sergio Massa, declared a temporary halt on fuel price increases until October 31, following discussions with the country’s oil producers and refiners.
This decision comes on the heels of a 12.5% hike in fuel prices by the semi-governmental entity Yacimientos Petrolíferos Fiscales (YPF) and recent increases by private oil companies such as Shell, Axion, and Puma.
From the Treasury Building, Massa said the consensus amongst oil producers, refiners, the Energy Department, Customs, and the Federal Administration of Public Revenues ensures the recent price hike will last until the end of October.
The minister explained that the pricing adjustment stems from a combined effort of consumers, companies, and the government, each absorbing a portion of the currency depreciation effects.
The economic head emphasized that there won’t be further price hikes during this period due to a stable exchange rate.
This announcement followed the Central Bank of Argentina’s decision to devalue the peso, the local currency, by 21.6% until October 31, amid rising informal dollar rates post the recent primary elections.
Massa also mentioned that the oil and gas industry is a significant contributor to Argentina’s economy, helping offset downturns in other sectors, like those caused by drought.