If the fund is approved by Congress, the fuel subsidy will not reduce current prices, but will cover new rises in Diesel type III. Drivers who use gasoline or other types of fuel will not benefit from the measure.
With an initial fund of 100 million dollars, coming from a credit line of 300 million dollars, which was already contemplated for the 2022 Budget, the Fuel Stabilization Fund will be financed, which must be approved by both chambers, to allow your application.
“The subsidy is for the final consumer, in no way is it for the emblem, because it is intended to disaffect the purchase price at the stations,” explained the Deputy Minister of Economy, Iván Haas, in communication with 730 AM.
The coverage will cover only Diesel Type III, since all cargo trucks and transportation in general move with this type of fuel. In this regard, Haas indicated that the idea is to benefit the most vulnerable population and that the proposal has a “social nature”, since prices also affect other products, which ultimately harm everyone, not just motorists.
The fund does not intend to leave a fixed price, but to cushion temporary increases. If oil continues to trend upward, subsidy compensation should accompany that rise.
“If fuel has to go up 700, then the fund can come in and dilute this increase, not all at once, maybe in two months. Because the price has a domino effect,” he explained.
REPLACEMENT OF THE FUND
The 100 million dollars are initially intended to contain up to G. 1,500 per liter for three months, however, the law itself provides for the replenishment of this Stabilization Fund, through the Selective Consumption Tax.
The ISC was at 680 guaraníes per liter, until the Government reduced it by 250 guaraníes, leaving it at G. 430 per liter.
When oil falls to a reasonable extent again, the ISC will return to its usual price of 680 and could even reach 780 or 800, when oil allows it. This will slowly replenish the used fund.
The subsidy will have a simple and transparent formula, so that all sectors can have predictability, according to Haas. As an example he cited a hypothetical number: when the barrel exceeds 90 dollars, the fund is activated. When it drops below 90, the background is removed and resources are replenished.
