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Price controls threaten stability in fuel supply
With the expiration of the “Precios Justos” program in Argentina, the fuel sector faces a supply crisis. The implementation of a Selective Tax on gasoline and diesel, a proposal being discussed in the Senate, has the potential to worsen the situation, increasing pressure on a price control system that is already fragile.
The impact of the tax increase
The Instituto Combustível Legal (ICL) highlights the concern with the price control system in Argentina, which could be the prelude to an increase in evasion and default in the sector. With the addition of new taxes, the already complex tax burden could encourage illegal practices, worsening fuel supply problems in the country.
The Complexity of exchange control
Argentina faces a paradox: despite producing excess oil in relation to domestic demand, the country does not have sufficient refining capacity, which forces it to import fuels. This process requires dollars, a currency that is increasingly scarce due to Argentina's strict exchange control.
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Consequences for the energy sector
Emerson Capaz, president of ICL, defends the maintenance of the single-phase ICMS system for hydrated ethanol, in order to ensure equal conditions in the fuel retail market. He warns that the exclusion of ethanol from this system facilitates tax evasion and the creation of fictitious companies that avoid tax payments, causing billions in losses.
The Need for Appropriate Legislation
For ICL, it is urgent to approve Bill 164/2022, which would establish a clear definition for persistent debtors and enable more effective actions against market operators who neglect their tax obligations. Kapaz highlights that a well-structured tax reform, combined with adequate legislation, can be an opportunity to reverse the current unfavorable situation.
With energy crisis As a backdrop, the ICL points to the need for structural reforms that can bring more stability to the Argentine fuel market. While changes do not occur, the country remains on alert for possible new waves of shortages in the coming months.
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Source: Luciana Amaral Minami – conteudonet.
