Fuel Price Hike Ahead in Buenos Aires: How Refiners are Adapting to Changing Market Conditions

The rise in gasoline and diesel prices in Buenos Aires is set to occur on May 1st, with super gasoline expected to exceed $875 per liter. This increase is the result of a combination of factors, including currency devaluation against the dollar and the need for refining companies like YPF, AxionR aízen, Shell, and Puma to recover their margins.

Despite the postponement of fuel tax updates until June, the price hike is still set to take place. This follows a shortage crisis in November that led to a steep increase in gasoline prices. Despite this setback, refiners had previously updated their margins between November and January but had to moderate their increases from February onwards.

Currently, oil companies are facing a 10% gap in diesel prices at the pumps and a 29% gap in gasoline prices compared to import parity. They are working hard to close this gap and recover their margins that have fallen since February due to fluctuating fuel prices. However, demand for gasoline and diesel has decreased by 12.1% year-on-year in March at the national level according to consulting firm Politikón Chaco.

Overall, the industry is adapting to changing economic conditions and fluctuating fuel prices by looking for ways to adjust its operations while maintaining profitability. Despite these challenges, it remains committed to meeting consumer needs while ensuring sustainable business practices.