Since 2024, under President Javier Milei, premium gasoline prices have increased approximately 500%, rising from AR$311 to AR$2,000 per liter largely due to the removal of frozen fuel taxes implemented in 2021. These tax adjustments, including the Carbon Dioxide Tax and Fuel Tax, add over AR$320 per liter, nearly 16% of the price, further amplified by additional regional taxes. Opposition voices highlight the imbalance created by the 2024 energy policy, which eliminated domestic supply protections and allowed exports despite high local prices, generating what former officials label as an “extraordinary rent” for oil companies that does not translate into increased investments or jobs.
Despite the international crude price volatility, YPF, the state-controlled oil company serving 55% of the market, has maintained a pricing strategy to prevent passthrough of full price swings. The government refuses direct price regulation but has recently increased export duties on conventional oil from 3.3% to 8% to capture some revenues. Market analysts suggest that only a sustained drop of Brent below $60 per barrel could lead to gasoline price reductions domestically, although tax updates may counterbalance that effect. Calls persist for differentiated pricing between domestic and export markets to protect Argentine consumers from international shocks and internal tax inflation effects, amid ongoing debate over balancing fiscal needs and economic affordability.
This article was curated and published as part of our South American energy market coverage.
