Regional energy inflation climbed to 8% monthly due to fuel impact

Geopolitical tensions in the Middle East and oil market volatility increased pressure on energy prices across Latin America and the Caribbean. By June 2026, the region's annual energy inflation reached 8.03%, compared to the 4.49% recorded for general inflation.

Petroleum derivatives were the primary driver of this difference, impacting households, passenger and cargo transportation, and productive activity. During the initial weeks of the conflict, crude surged as much as 60%, while liquid fuels at the pump increased approximately 20%.

The subsequent decline in international prices did not translate to consumers with the same speed. The use of inventories purchased at elevated values, combined with refining costs, transportation, insurance, taxes, and commercial margins, sustained retail prices and created downward rigidity.

The impact varied across regional countries. Some implemented subsidies or stabilization mechanisms to moderate increases, while others passed international costs through more rapidly due to lower fiscal capacity and higher operating expenses. None managed to return to price levels in effect in February.

In Argentina, Vaca Muerta development enabled sustained hydrocarbon supply, although the liquid fuels market remained exposed to Brent international benchmarks. Premium gasoline accumulated gains exceeding 30% for the year and averaged $2,100 per liter at service stations in the Buenos Aires Metropolitan Area, while diesel price increases pressured logistics costs.

Facing this scenario, the Government moderated the planned pace for energy subsidy reduction. Among measures adopted, it expanded from 150 to 200 kWh monthly the subsidized electricity consumption tier for low and middle-income residential users. Even with this relief and accumulated subsidies exceeding $2.6 billion, average tariff coverage remains barely above half of the system's technical costs.

Information from Mejor Energía.