On Wednesday, May 1, gasoline and diesel prices will increase by 4% to 5%, with super gasoline in Buenos Aires expected to be above $875 per liter. This rise is due to 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.
The demand for gasoline and diesel has decreased by 12.1% year-on-year in March at the national level, according to consulting firm Politikón Chaco. Despite this decrease, oil companies are still facing a 10% gap in diesel prices at the pumps and a 29% gap in gasoline prices compared to import parity. They are looking to close this gap to recover their margins which have fallen since February.
The refiners had previously updated their margins between November and January but had to moderate the increases beginning in February. This comes after a shortage crisis in November led to a steep increase in gasoline prices. The postponement of fuel tax updates until June has not stopped the increase from taking place, leading to rising fuel prices at the pumps.
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 adjust to the changing economic climate and fluctuating fuel prices.