Gasoline and diesel prices in Buenos Aires are expected to rise by 4% to 5%, with super gasoline prices surpassing $875 per liter. The increase is a result of several factors, including the monthly devaluation of the peso against the dollar and the need for refining companies like YPF, AxionR aízen, Shell, and Puma to recover their margins.
Despite the postponement of fuel tax updates until June, this increase will still occur. Refiners had previously updated their margins between November and January but had to moderate them due to a shortage crisis in November that led to a sharp increase in gasoline prices.
Oil companies are currently facing significant price gaps at the pumps for both diesel and gasoline compared to import parity. They are working to close these gaps in order to recover their margins which have been declining since February. According to consulting firm Politikón Chaco, demand for gasoline and diesel has decreased by 12.1% year-on-year in March at the national level.
Overall, the increase in fuel prices is due to a combination of factors including currency devaluation, refining company margins, and postponed fuel tax updates. Despite these challenges, the industry is looking for ways to adapt to the changing economic climate and fluctuating fuel prices.
