Government studies giving benefits to oil companies to avoid layoffs

Changes are looming in the fuel sector, a few days after the measure that the government took through a decree in late February expired.

At that time, and with the aim of “providing an immediate response to the current circumstances”, the national government had suspended the increase in the liquid fuel tax, which had already been postponed in early February.

Through the decree, which was signed by President Alberto Fernández, the Minister of Economy, Martín Guzmán, and his counterpart in Productive Development, Matías Kulfas, it was specified that the increases would be postponed until “March 31, 2020”.

In this way, the Executive Power had made the decision to run for later the different tax updates for gasoline and diesel, which were originally scheduled for the end of 2019 but were systematically postponed to “stabilize prices”.

Nevertheless, It emerged that the Government has now decided to increase the Liquid Fuel Tax (ICL) for the first time since Alberto Fernández took office in December.

What remains to be confirmed is whether it will be fully implemented: this would mean $ 3 per liter of gasoline and $ 2 per liter of diesel. However, whatever the final number, they ensure that it will not have an impact on the jets, as this will be absorbed by the refiners.

In return, the companies are negotiating in return to have a “Creole barrel” scheme and mobile oil withholdings. The Government thus seeks to avoid layoffs due to the unemployment that is generating the quarantine.

A few days ago, Ministers of Economy and Energy of the oil provinces nucleated in the Federal Organization of Hydrocarbon Producing States had asked the Nation to apply a support price of US $ 54 per barrel, although the Government is evaluating a level u $ s10 lower.

Through the “Creole barrel”, the oil companies receive funds to support the price of national crude and thus be able to guarantee activity at the domestic level, including investments and jobs.

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