Lower gasoline prices in Brazil caused a 40% drop in sales in Uruguayan border cities

The impact of the massive increase in oil prices due to the war between Ukraine and Russia turned on a warning light when most governments decided to remove taxes on fuels as a way to prevent this impact from being transferred to the rest of the chain (food, industry, agriculture).

In the case of Uruguay, President Lacalle Pou announced adjustments in the IRPF and IASS taxes but did not mention the IMESI tax on gasoline, which left the country at a clear disadvantage with its neighbors, Argentina and Brazil.

In the case of Argentina -the subject of analysis in previous editions of Surtidores- a liter of Super 95 gasoline costs about UYU 20, against almost UYU 81 in Uruguay.

BOLSONARO’S DECISION

Concerning Brazil, gasoline had reached the same price levels as in Uruguay, even some days positioning itself above, a situation that has just been reversed by President Bolsonaro’s decision to lower fuel taxes.

This decision of the Brazilian government impacted the Brazilian border cities with Uruguay, where a liter of Super 95 gasoline costs UYU 47.88, against the UYU 61.46 in Uruguay (paying it with credit cards).

RIVERA AND CHUY

Surtidores talked to gas station owners from Uruguayan cities bordering Brazil (Rivera and Chuy), who assured the drop in sales had been significant.

They reported that after the July vacations, the records show an abysmal drop, with indexes well below the average until the end of June.

“Today’s difference of almost UYU 12 per liter has caused vehicles to return to refuel with additive gasoline from the Brazilian side,” they explained.

Juan Cariboni, an operator of ANCAP Chuy, revealed to Surtidores that in the last ten days, since the implementation of the tax reduction in Brazil, the sales of Super 95 in his establishment had a real decrease of 40%.

With information from Surtidores