Monday, September 26, 2022

ECONOMY | 30-01-2020 13:38

Government extends fuel price freeze until end of February

Fernández administration to retain restrictions until the end of February in order to curb inflation.

The national government has decided to extend the existing freeze on fuel prices until February 29, retaining a tool in the fight against inflation.

Producers and distributors, however, warned that there is a "delay" in value of up to 16 percent waiting that the government is kicking down the road.

The extension was formalised in in the Official Gazette on Thursday through Decree 118/2020 signed by President Alberto Fernández, Cabinet Chief Santiago Cafiero and Productive Development Minister Matías Kulfas.

The presidential decree also delays, until March, the update of taxes that govern liquid fuels, with the intention of maintaining existing prices at the pumps throughout February.

Due to the application of 10 increases throughout 2019, thanks to changes in tariffs, the prices of fuel, gasoline and diesel increased by an average of 41.8 percent over the past year, around 12 points below the rate of inflation as registered by INDEC's Consumer Price Index.

The Manager of the Confederation of Hydrocarbon Entities (CECHA), Guillermo Lego, said Thursday that the continuation of the freeze was good for the general population because it keeps prices as they are, though he warned "it is bad for the [petrol] station-owners".


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