A blow to the wallet: Gasoline and diesel prices in Argentina are now higher than in neighboring countries.

Gasoline and diesel are more expensive in Argentina than in the rest of the region, and everything indicates another increase in early July. This has raised local prices compared to other countries, particularly affecting products with international prices, such as fuel.

According to data from the Global Petrol Prices portal, a liter of gasoline averages $1.15 in Argentina, and diesel, $1.19. However, prices can vary: in the City of Buenos Aires, they are lower due to logistical and tax reasons, as well as its symbolic importance as a national benchmark. Even so, the national average already exceeds that of Brazil, Paraguay, and Chile, and is approaching that of Uruguay, where fuels are traditionally more expensive.

In Paraguay, which doesn't produce oil, gasoline costs 80 cents and diesel, 87 cents. In Brazil, a regional producer, gasoline costs US$1.13 and diesel US$1.08. Even in Chile, which also imports all its fuel, diesel is cheaper than in Argentina. Only Uruguay significantly exceeds local prices, with gasoline at US$1.95 per liter.

"The high price is mainly explained by the exchange rate. The tax structure remains the same as when foreigners came to fill up their tanks. Just like clothing, food, or doctor's fees, everything has become more expensive," explained former Undersecretary of Fuels Alberto Fiandesio. A sector executive added that 35% of the pump price is due to national and provincial taxes, in addition to municipal fees and logistics costs.

The latest price increase was implemented by Shell , Axion, and Puma, while YPF decided not to change its prices to avoid further straining inflation. This created a gap of up to 10% with its competitors. However, the state-owned oil company cannot sustain this difference indefinitely: everything indicates that it will lead the new price adjustment starting July 1.

At the same time, the government continues to postpone the fuel tax update to avoid inflating prices. This decision, however, entails a loss of revenue, which also has a limit. Everything indicates that the increase is imminent.