Government of Argentina agrees with oil companies a monthly increase of 4% in fuel prices

The Argentine Minister of Economy, Sergio Massa, agreed with the hydrocarbon companies a monthly increase in fuel prices of up to 4% from December to March.

“We are going to have December, January, February and March with a predefined path of increases: 4% in December; 4% in January; 4% in February and 3.8% in March,” Massa announced during a meeting with leaders of the sector.

The inclusion of fuels in the Fair Prices program, by which the price of 1,800 premium products was set and the maximum increase of 4% for another 30,000 supplies was fixed, will allow inflation to be gradually reduced, according to the Palace of Tax authorities.

“It is an agreement in which, in addition, the State undertakes to guarantee access to foreign currency for companies, especially for the supply of lubricants, to temporarily reduce taxes on fuel imports, in order to guarantee supply for the agricultural sectors, especially during the months of January and February”, pointed out Massa

The Secretary of Commerce, under the orbit of the Ministry of Economy, will be the body responsible for guaranteeing compliance with the program.

With this initiative, the Government intends to create the conditions to “calm down the Argentine economy” and grant certainty to the companies’ value chain, said the head of the Palacio de Hacienda.

In early November, the government of Alberto Fernández reached an agreement with food suppliers and supermarkets to fix the price of 1,800 essential products for four months, and to authorize a maximum increase of 4% per month for another 30,000 supplies.

In parallel, the Argentine Executive restored this Monday a special regime for soybean agro-exporters, which will be in force on December 31, for which the dollar will be equivalent to 230 pesos, when the official one is at 164.25.

Through this measure, which involves a transfer of State income to one of the most important economic sectors in the country, the Government hopes to get US$3 billion before the end of the year.

Between January and October of this year, Argentina accumulated inflation of 76.6%, according to official figures. The increase in the cost of goods and services in the last 12 months reached 88%, according to the National Institute of Statistics and Censuses (Indec).

With information from Sputnik