And secondly the president announced new measures that aim to mitigate the rise in prices in products of the basic basket and in a context of rising inflation. For now, noodles, baked goods and similar products will initially be exempt from VAT for 30 days.
The Executive Branch resolved an adjustment (third consecutive) in gasoline and diesel. ANDhe price of Super 95 gasoline rises $3 per liter at the pump (4%) and goes from $74.88 to $77.88 per liter, while regular diesel oil increases $5 per liter (9.2%) and goes from $53.99 to $58.99. As in previous months, the correction is lower than what was indicated by the rule based on the evolution of international prices.
The Import Parity Price (PPI) report that corresponds to the last moving month between February 26 and March 25 showed that the price of gasoline should have had a variation of $7.54 per liter (+10.1 %), and diesel of $15.22 per liter (+28.2%).
also increased the price of supergas (LPG) which went from $60.35 to $63.35 per kilo (5%). In this way, now the 13 kg bottle has a cost to the public of $823.55 (without shipping).
During February, the average price of Brent oil had been US$95.5 per barrel, and in March it stood at US$117.5, with an upward variation of 23%. The volatility already characteristic of this commodity gained strength since the beginning of the war between Russia and Ukraine. There was also a 48% increase in the price of international freight during the last month.
From January 2021 and to date, the price of Super 95 gasoline has increased 33.5% per liter, and 50-S diesel has increased by 46%. In that period, the average price of oil became US$62.5 more expensive, going from US$55 in January 2021 to US$117.5, which was the average in March 2022.
Noodles and baked goods
The government resolved that it will exempt from VAT “bread, noodles and similar products” of national origin and there will be a “similar” attitude for those who import these foods.
The measure will be for at least 30 days and with the possibility of extending it for longer, as may happen in the case of the roast that has already been sold without basic VAT since last week. In addition, it was agreed with the producers to freeze the sale price of the eggs for a month.
Lacalle Pou also said that the import regime for some products that are not made in Uruguay and that have “some tariff issues” is being reviewed.
On the other hand, the president stated that from his point of view, “It is not the large stores that drive prices up, but when the products are imported. “That’s where we have to work,” he said, citing the price of toothpaste on the border with Brazil as an example.
“The same toothpaste made by the same manufacturer, coming from the same place, 10 meters from one side of the landmark and the other, has a difference of two and three to one. That is what we have to work on and that is what import permits do”, he pointed out.