Government Postpones Fuel Tax Update to October

The Government again deferred the update of taxes applied to fuels, which was scheduled to begin on September 1. Through Decree 829/2026, it extended the current scheme through the end of the month and pushed the accumulated impact to October 1.

The measure affects unleaded gasoline, virgin gasoline, and diesel. The stated objective is to avoid an immediate increase in pump prices and contain the transfer of higher costs to the broader economy.

The decree was signed by President Javier Milei, Cabinet Chief Diego Santilli, and Economy Minister Luis Caputo. The regulation concentrates in October the pending increases corresponding to 2024 and 2025, plus the first two quarters of 2026.

The taxes involved are the Tax on Liquid Fuels and the Carbon Dioxide Tax. Both must be adjusted every three months according to the evolution of the Consumer Price Index (CPI), although since 2024 the Executive has applied partial increases and postponed the remaining balances.

With this decision, the update has been postponed for the thirteenth time since 2024. In its justification, the Government stated that the new deferral aims to sustain economic growth within a scheme deemed fiscally sustainable.

A report from Instituto Argentina Grande indicated that the Tax on Liquid Fuels rose from representing 8.9% of the price of premium gasoline in November 2023 to 19.25% in July 2026.

With information from Energía Online.