Argentina Faces Fuel Sales Plunge Amid Economic Challenges

Argentina Faces Fuel Sales Plunge Amid Economic Challenges

BUENOS AIRES, Argentina (EFE).— Fuel sales in Argentina fell in the first half of the year, while gasoline prices continue to rise, with a new increase starting today.

In the first half of the year, the volume of fuel sold totaled 8.24 million cubic meters, which represented a year-on-year drop of 9.3%, according to a report by the consultancy firm Politikon Chaco.

By fuel type, accumulated gasoline sales in the first half of the year showed a year-on-year contraction of 8.2%, while in the case of diesel – used in Argentina for freight transport and agricultural machinery – the drop was 10.6%.

In a context of very high inflation (271.5% year-on-year in June; 79.8% accumulated in the first half of the year) and loss of purchasing power of wages in Argentina, consumers cut back on their loads at the gas stations in the face of constant price increases in fuel since last December.

A new increase will take place today, when prices will rise by around 3% at charging stations.

“Super” gasoline (the cheapest on the Argentine market) will be sold starting this Sunday at around 1,020 pesos (1.04 dollars/94 euro cents) per liter at service stations in Buenos Aires, Argentina.

Taking into account Sunday’s increase, the price of this fuel will have accumulated an increase of 84.4% so far this year.

The successive increases are part of the policy of Javier Milei, who assumed the Presidency last December, to release the repressed prices of the economy and, in the case of fuels, to bring them to levels more in line with international markets and more profitable for companies in the sector.

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2024-09-15 15:18:18

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