The April 7% increase brought premium gasoline to 82.27 pesos per liter, diesel to 50.63 pesos, and liquefied petroleum gas to 94.65 pesos. These prices remain substantially below import parity pricing, which would have triggered increases exceeding 30% and reaching 60% for diesel. Uruguay’s approach contrasts sharply with neighboring countries that implemented full pass-through of international price increases. The International Energy Agency has classified the current supply disruption as the largest since 1973 and the greatest threat to energy security in history.
The price differential with Argentina and Brazil has created monitoring challenges, as transport operators from those countries sought to purchase cheaper diesel in Uruguay. Cardona emphasized the need to balance consumer protection with avoiding supply vulnerabilities relative to neighboring markets. Ancap has secured crude purchases at elevated prices through credit lines and purchased price insurance covering April and May, guaranteeing acquisition costs below certain thresholds regardless of barrel price movements.
Economy Minister Gabriel Oddone indicated the $30 million monthly subsidy cost falls within the MEF’s tolerance margin but acknowledged that prolonged conflict would add pressure to an already restrictive fiscal scenario. The government shifted from bimonthly to monthly price reviews following the February 28 US-Israel attack on Iran and will maintain this frequency during the international crisis period. Oddone stated the ministry is refining fiscal projections and growth scenarios to account for both transitory and persistent shock conditions, with updates expected in the June budget accountability process.
Uruguay’s renewable energy capacity, representing approximately 97% of electricity generation, provides relative energy sovereignty and policy flexibility compared to regional peers facing similar external shocks.
This article was curated and published as part of our South American energy market coverage.
