As reported by Filo.News, the Minister of Economy, Sergio Massa, announced today the agreement with the oil companies for fuels to participate in the Fair Prices program with monthly increases of up to 4% until March next year. With this program, the government tries to “walk a path of tranquility” and lower the monthly inflation floor of 6.5% that has been dragging since mid-year and that on some occasion could fall, but could not sustain it over time. “We are going to have December, January, February and March with a predefined path of increases: 4% in December; 4% in January; 4% in February and 3.8% in March, with the aim of continuing to build a path in which all sectors contribute to significantly lower inflation, which is the main drama in Argentina,” said the head of the Economy Ministry during a meeting with executives of the main oil companies. At the meeting held at the Ministry of Economy, Massa was accompanied by the Secretary of Energy, Flavia Royon, and the Secretary of Commerce, Matías Tombolini; on the business side, Pablo González (president of YPF), Pablo Iuliano (CEO of YPF), Marcos Bulgheroni (PAE-Axion), Teófilo Lacroze (Raizen-Shell) and Rodrigo Turienzo (Trafigura) were present.
In this way, the companies YPF, Shell, Axion and Puma commit that fuels do not increase more than 4% during the first three months of the agreement and 3.8% in the fourth month, while from the State we will guarantee that they can access foreign currency for their imports. — Sergio Massa (@SergioMassa)
November 28, 2022
“The fuel issue is a central issue in Argentine economic life. Not only for what is the day to day of the people but for the sectors of production and agriculture, “said the minister.
In return for being part of the program, the oil companies obtained the benefit of postponing from January to after March the payment of the Tax on Liquid Fuels (ICL), as well as guarantees regarding imports of products linked to the sector and access to foreign currency.
“For us it is very important to thank YPF, Shell, Trafigura, Axion first of all because being able to incorporate them into the Fair Prices program allows us to travel a path of tranquility for the people,” said the head of the Economy Ministry and added that this is an agreement that, in addition, guarantees “access to foreign currency for companies, especially for the supply of lubricants.” In turn, the minister stressed that the inclusion of oil companies at Fair Prices, in addition, provides for a temporary reduction in taxes on the import of fuels, in order to “guarantee supply for the agricultural sectors, especially during the months of January and February, the most important.” The Fair Prices program, launched by the national government a week ago, sets for a period of 120 days the prices of more than 2,000 basic necessities and a maximum increase of 4% for another 30,000 items, through voluntary agreements with producing and marketing companies.
