Uruguay coastal fuel stations report 20% sales drop as Argentina price gap widens to 27%

Mario Rostan, owner of an ANCAP station in Fray Bentos, reported April 2026 sales volumes declined approximately 20% year-over-year, with the impact expected to deepen following the most recent price adjustment in May. The operator noted that even with the current 15% IMESI discount applied in border zones, Uruguayan gasoline remains 27% more expensive than in Argentina, a differential that directly influences fueling decisions particularly in areas closer to border crossings. Private sector analysis indicates gasoline prices in Uruguay’s coastal region increased 43.07% between March 2025 and May 2026 when combining both direct price increases and the reduction of IMESI tax benefits. As of May 2026, gasoline in the coastal region costs 25.33% more than in Argentina inclusive of the 15% discount currently applied.

The pricing dynamics are reshaping transaction patterns at the pump. Rostan emphasized that consumers purchase by monetary value rather than volume, meaning the same expenditure now yields up to one-third fewer liters than previously, directly impacting station revenues. The operator indicated the phenomenon responds to sustained consumer behavior patterns, noting that when tax benefits were more generous, consumption expanded accordingly. While Fray Bentos experiences somewhat less impact due to its distance from border crossings, departments including Paysandú and Salto face more pronounced effects given their proximity to Argentine cities.

Legal analyst Gabriel Cartagena highlighted the structural economic burden facing the northern coastal region, noting that elevated fuel costs cascade through transportation, distribution, and commercial operations. The expert pointed to the 2023-2024 period when thousands of Uruguayans crossed daily to Concordia, Colón, and Gualeguaychú for basic purchases, resulting in local commerce facing sales declines, workforce reductions, and competitive disadvantage. Though the price gap narrowed during 2025-2026 due to Argentine economic changes and price increases in that country, the differential remains substantial despite the expansion of IMESI benefits to a 60-kilometer radius from border zones.

National fuel sales data from November 2025 showed the sharpest year-over-year decline of that year, with total volumes falling 6.51% to 1.376 million cubic meters compared to the same month in 2024. The monthly comparison also reflected weakness, with November volumes declining 1.67% versus October despite having one fewer day in the period. Product-specific analysis revealed divergent patterns, with premium gasoline rising 1.08% and Grade 3 diesel increasing 0.5%, while super gasoline fell 3.42% and Grade 2 diesel plummeted 18.63%, indicating reduced activity in transportation and productive sectors.