The Government again postponed the full application of fuel taxes and moved to November 1 the increases that should have taken effect since October, at a time when oil companies have already begun to increase gasoline and diesel prices due to the international escalation of oil prices.
The decision, aimed at not add pressure on inflationwas made official this Wednesday in the Official Gazette. The measure covers the Tax on Liquid Fuels (ICL) and the Carbon Dioxide Tax (IDC) paid by gasoline and diesel, which by Law must be updated quarterly in line with the evolution of the Consumer Price Index (CPI). However, The Government has only partially applied these updates and postponing the transfer of the remaining balance.
The pending balance already includes the updates corresponding to 2024, 2025 and the first and second quarters of 2026. In the recitals of the decree, the Government justified the new postponement by the need to “continue stimulating the growth of the economy through a sustainable fiscal path.”
The decision has, however, a cost for public accounts. In the first eight months of 2026, the estimated collection loss by The policy of not fully updating fuel taxes accumulated US$ 1,229 million. The participation of the ICL and the CO2 tax on the final price at the pump remains below its historical incidence.
The strategy could begin to change next year. According to the 2027 Budget project sent by the Government to Congress, the collection from taxes on gasoline and diesel would increase 59% in one year, the largest increase expected among tax revenues.
The measure comes after a new round of fuel increases. Raízen (operator of the Shell stations), Axion and Puma, applied increases of between 2.5% and 5%, in reaction to the rise in the international price of oil due to the conflict in the Middle East.
YPF initially did not accompany these movements, but later announced an average increase of 1% in gasoline and diesel. The oil company, which concentrates more than half of the Argentine market, explained that it will maintain its “buffer” scheme, with which it seeks to avoid immediately transferring all international volatility to local prices.