YPF, Shell raise consumer petrol prices by over 2.1%

Argentina's state-owned oil company YPF and competitor Shell increased their consumer petrol prices by 2.5 and 2.1 percent respectively this week.

The increases were immediately rejected by the FECRA fuel retail federation, whose secretary Hernán Landgrebe told Perfil, "with every increase, labor and capital are affected".

Consumer fuel sales fell 10 percent in the last 12 months and premium offerings had slumped 25 percent, Landgrebe claimed.

The Macri government last week decided to apply only one third of the Liquid Fuels Tax (ICL), with fuel retailers expressing relief. That measure ensures fuel prices are readjusted 3.9 percent in July instead of the previously determined 11.8 percent per litre.

Argentina's weak peso has added to tension surrounding fuel prices and, more generally, the cost of living in Argentina.

YPF raised consumer petrol prices by 2.5 percent on Monday, while gasoil will also jump 1.75 percent.

Standard products in Buenos Aires City now fetch AR$43.71 (US$1.03) per litre while premium variety Infinia reaches $50.43. D500 gasoil will now set drivers back $40.94 while Infinia Diesel is selling for $47.92.

Axion and Puma will also soon raise their prices in line with YPF and Shell's decision, the companies confirmed in press releases.

"We though that with the dollar flat and crude prices dropping, their profit margins had been restored. This is an issue for us in our operations because each rise hits consumption. We thought the second part of the year would be better but it appears this won't be the case", Landgrebe complained.

YPF said in a statement that its decision to raise prices responds to global price pressure.

-TIMES/PERFIL