State Oil Company YPF followed in the footsteps of its competitor Axion and, from this Sunday, increased fuel prices by an average of 9.5% at petrol stations across the country. While in the interior the increases were around 8%, in the city of Buenos Aires they were on average closer to 10%. It is also expected that Shell will update the values at the pumps of its stations.
The average increase for supernaphthas was 8.9%; for premium naphtha, 9.7%; for diesel, 9.7%; and for premium diesel, 9.9%. That is the price of the premium naphtha in the Buenos Aires gas stations was more than $ 43 per liter and the super reached more than $ 36. In some provinces in the interior, such as Córdoba, the premium naphtha is almost $ 47 and the super was a few cents above $ 41.
This is the third increase in the month of September for fuels and the fourth is taken into account only on oil, which had an extra increase halfway through the month due to the increase in biofuels.
Represent YPF service stations more than half of the Argentinian market for fuel sales, with a share of 52.9%, followed by Shell (20.1%) and Axion (11.1%).
This time the increases react to the increase of several variables. Amongst them the value of the dollar, the international price of oil and biocombusibles. "The strong increase in the exchange rate generates strong pressure on the prices of liquid fuels which in any case increase every month without reaching equilibrium values, after the delay caused by the price agreement signed in early May by the previous Ministry of Energy and the main oil companies, and which was only carried out during a few weeks, generated a delay that still has not been eliminated, "they declared from the Fuel Emission Federation of the Center of the Republic (Fecac).
Increases in YPF fuel prices in 2018
Up to now Super Naphtha has built up an increase of almost 60% this year. The federation found that the average price of diesel (class 3) at filling stations in August 2018 was 62.9% higher than in August 2017. During the last two years – August 2016 to August of 2018- this price rose by 81.1 %.
Whereas the average price of premium nafta in August 2018 was 63.7% higher than in August 2017. In the past two years it rose by 87.8%.
"As the national consumer price index increased by 34% between August 2017 and August 2018, the increase in the average diesel price was 28.9 percentage points above inflation, while the increase in the average price of premium nafta in Argentina was 29.7 percentage points above inflation", they indicated.
For December, in addition, the impact of the increase in the planned update for the amounts of liquid fuel tax is expected, which determines the AFIP based on the variation of the consumer price index (CPI) of the INDEC compared to the previous quarter.