Tax adjustments, notably increases in Impuesto sobre los Combustibles Líquidos (ICL) and Impuesto al Dióxido de Carbono (IDC), were partially deferred through 2025 with full implementation expected starting 2026. While the government tries to balance inflation control and fiscal sustainability, partial postponements have limited immediate price impacts. Additionally, YPF’s introduction of dynamic pricing algorithms (Micropricing) enables fine-tuned daily price variations adjusting to demand and local competition.
Fuel cost components affecting price increases include currency depreciation, higher biofuel input prices, and tax adjustments, while the decline in international Brent crude prices exerted downward pressure. Domestically produced crude prices are now aligned with global benchmarks, influencing refinery input costs.
Looking ahead, the key uncertainty lies in possible sharp currency corrections in 2026, which could forcibly realign fuel prices upwards to regional parity levels (e.g., Uruguay and Chile’s current prices). Such a scenario may significantly impact inflation dynamics and transport costs, given fuel’s foundational role in the Argentine economy. For now, Argentina remains a regional “oasis” of relatively cheap fuel for foreign consumers and a challenge for local users managing inflationary pressure on disposable income.
This article was curated and published as part of our South American energy market coverage.
