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10h ago

Argentina Restores Inflation-Linked Fuel Taxes in Two Stages Starting Sept. 1

The measure seeks to recover deferred revenue under the fuel-tax law after months of postponements.

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Overview

  • Decree 617/2025 was published in the Boletín Oficial, signed by President Javier Milei, Chief of Cabinet Guillermo Francos and Economy Minister Luis Caputo, and it repeals Decree 466/2024.
  • From September 1, the per‑liter tax increases are $11.168 for gasoline (ICL $10.523 and IDC $0.645) and $9.555 for diesel (ICL $8.577 and IDC $0.978), with a $4.644 differential for some southern areas on gasoil.
  • The updates apply in two phases, with a partial adjustment from September 1–30 and the remaining accumulated amounts taking effect on October 1.
  • The government frames the step as fiscal consolidation and a return to the quarterly IPC-linked mechanism established by Law 23.966.
  • Analysts expect pass‑through to pump prices and broader inflation, including food, with consultora LCG reporting a 3% rise in food prices in August.