Through its Official Gazette, the Government announced that the increase in taxes on fuels is being postponed once again, since these could affect the final price of several products and services and push inflation much further.
In this sense, the executive power announced that the taxes will not be updated until September. The measure of Government bears the signatures of President Alberto Fernández; the Chief of Cabinet, Juan Manzur and the Minister of Economy, Martín Guzmán.
This would be the sixth time the Government postpones the update of taxes on liquid fuelssince from the first quarter of 2021 they are not carried out.
The law indicates that the Executive Power must update the amounts per calendar quarter based on the variations of the Consumer Price Index (CPI) provided by the INDEC (National Institute of Statistics and Censuses).
However, these updates would affect the final price of gasoline, which this year has already suffered three increases, so that, consequently, it would push inflation further, when the economic team seeks to keep it lower.
If the value of the taxes were updated, it would also affect the rate of public transport, food, among other products and services, which the Government seek to avoid at all costs.
It should be remembered that with the last increase in gasoline, 12% by private oil companies and 10% by YPF, On average, a liter of super is obtained at $120 in the City of Buenos Aires.
What is expected about May inflation
The executive power has been optimistic about inflation in May, which, as announced, will be lower than that of April, since a floor of 4.9% is contemplated.
However, private consultants differ quite a bit from this percentage, since with the increases in food and other products, they project a percentage of between 5% and 5.5% during the fifth month.
