Monday, May 20, 2024

ECONOMY | 13-12-2023 17:46

Fuel prices in Argentina soar a further 37% after devaluation of peso

Fuel prices will soar around 37% on average over the course of the week following Economy Minister Luis Caputo's devaluation of the peso.

Fuel prices will be going up 37 percent on average in the course of the week, energy sector sources said on Wednesday.

The price of a litre of petrol rose to more than 600 pesos at some locations with further rises expected.

The price lists have already started to arrive at the different service stations in this metropolis with the Federal Capital the first in line.

The new increases, the third round in the last three weeks, come after Economy Minister Luis Caputo confirmed a devaluation of 54 percent on Tuesday night.
This depreciation of the national currency signified an immediate surge of 118 percent in the official exchange rate for foreign trade, passing from 366 to 800 pesos. But the greenback still continued rising the following day.

At a meeting of businessmen and executives to mark Oil Day, there were palpable concerns regarding increased costs. Reliable sources made it known that fuel prices at the petrol pumps would be going up in the next few hours.

The devaluation, while seeking to make Argentine exports abroad more competitive, carries the risk of greater inflation. Increased fuel prices, a fundamental input for most industries, will likely further accelerate inflation.



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