State-run energy company YPF raised consumer petrol prices by five percent yesterday, as the Mauricio Macri government decides its next move in the battle against cost of living pressures.
The hike comes at a bad time for Argentine consumers as they deal with the consequences of the stubborn rate of inflation and a national currency that has plummeted to close to 29 pesos to the dollar. Rising international petrol fuel prices have also played their part.
Fuel companies are warning it won’t be the last price hike this year, claiming a 30-percent delay.
The government has its eyes on energy, a sector whose operating costs are heavily dollarised.
The five percent is reported to have surprised even the Energy Minister, Javier Iguacel. The recently appointed minister had met with fuel company bosses last week who suggested a three-percent rise.
With a 20 to 25 percent phased increase in electricity prices scheduled for September and the same in gas prices for October, the Macri administration is on edge.
Premium fuel products in Buenos Aires City are currently fetching 32.34 pesos (US$1.2) per litre on average.
-TIMES/PERFIL
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