The former Governor of the Central Bank, Guillermo Caram, considered wrong the Government’s decision to assume the increases recorded every week in fuel prices in the local market, due to increases in the cost of a barrel of oil.
He said that in the short or long term the subsidies revert against the economy.
“More subsidies is more expenses, more expenses is more deficit, more deficit is more indebtedness or inorganic issuance via overdraft of the current accounts of state companies that translates into inflation and devaluation, which in the long run the population will pay. I don’t think subsidies are the solution,” he said.
Caram proposed that the authorities leave the cost of the different fuels to supply and demand.
Caram also, freeze the taxes that are applied to fuels, in addition to the profit margins of the actors that intervene in the distribution and commercialization of petroleum derivatives.
By: Renteria Montero
