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Argentina Sets Partial Fuel Tax Hike for January 2026, Defers Remaining Increases to February

The decree opts for a gradual update to support a sustainable fiscal path.

Overview

  • The government published Decree 929/2025 in the Official Gazette, formalizing partial updates to the Liquid Fuels Tax (ICL) and the Carbon Dioxide Tax (IDC) from January 1, 2026.
  • For gasoline, the ICL rises by 17.291 pesos per liter and the IDC by 1.059 pesos per liter during January.
  • For diesel, the ICL increases by 14.390 pesos per liter, with an additional 7.792 pesos per liter under the regional differential, and the IDC adds 1.640 pesos per liter.
  • The measure modifies Decree 617/2025 and shifts the remaining pending updates to February 1, 2026.
  • The adjustments do not automatically translate to pump prices, though they affect the cost structure that fuel companies consider when setting rates.