Despite the low demand at the pumps, the Argentine oil company decided to implement a new increase in the values of its fuels
The oil company YPF announced a rise of 3.5% average in the prices of their fuels. As iProfesional anticipated, the increase stems from a tax adjustment.
“Starting at 0 am on Saturday, January 16, YPF will adjust its fuel prices by 3.5% on average. This adjustment includes the 7.7% increase in the tax component (ILC and IDC), which came into effect as of January 15, “the company said.
In this way, new YPF prices in the City of Buenos Aires are:
- Super gasoline: $ 71.83
- Nafta Infinia (premium): $ 83.01
- Diesel 500: $ 66.86
- Infinia Diesel (premium): $ 78.76
A January with strong increases
The sector has already implemented an increase in this first month of 2021. Last week, Raizen (Shell), Axion and YPF – in the latter case, of 2.9 percent– They applied increases in the pumps to compensate the higher price that the Government authorized for biofuels.
When it comes to understanding the variations that, in service stations, are taking shape in 2021, we must also look at what is happening with international crude. The barrel of Brent accumulates an increase of 20 percent from December to this part.
And that variable, added to the devaluation due to the fluctuation of the dollar, also complicates any attempt to calm the price of the liter. As long as the oil remains unstable, costs to companies will continue to increase in volume so sustaining a value over time will continue to be an elusive goal.
Hot January: the year began with a significant increase in fuel prices.
Gas stations, complicated
According to Guillermo Lego, manager of CECHA -the confederation that integrates the businessmen of the outlet-, the sale of fuels remains at least 30 percent below the numbers of the pre-pandemic stage.
“Beyond the government’s need, applying more raises in this economic context does not necessarily guarantee an improvement to the oil companies,” he said.
Currently, with the exception of the service stations established in areas with tourist traffic such as the Coast, Córdoba or the mountain range of Patagonia, the rest of the marketers continue to operate at a loss.
Each new increase applied to gasoline prices lights red lights on the economic dashboard of service stations. It happens that the “tweaks” hit the demand fully as a result of the dominant recession. Today, the commercialization sector operates at a loss and each increase is seen as one more push to the precipice of definitive closure.
A recent report by CECHA stated that the different complications faced by the points of sale keep more than half of the points of commercialization of fuels in danger of definitive closure.
Sales at gas stations are still 30 percent below the pre-pandemic stage.
The work in question revealed that 3 out of 5 service stations run the risk of closing permanentlyWhile 85 percent of the sales sites will not be able to sustain themselves in the medium term if the situation -in terms of demand- does not improve.
“In addition to this table, the stations were excluded from the Work and Production Assistance program as of November,” it was indicated. As he could inquire iProfessionalOnly among those associated with the confederation there are around 3,300 service stations on the brink of bankruptcy. If it happens, this will result in the loss of at least 40,000 jobs.