MercoPress. South Atlantic News Agency

New increase in price of fuel announced in Uruguay

The decision seeks to preserve the country's energy security and mitigate the negative effects of the international crisis

The Uruguayan Government of President Luis Lacalle Pou finally announced an increase in the price of fuel at pumps, with which 'Super' gasoline will have risen 15% and 50S diesel 30% so far in 2022. The new increase in the price of fuels will come into effect June 1.

“The government is committed to continue maintaining the country's energy security and to mitigate the negative effects of the international crisis, without neglecting the patrimonial and financial situation of [the state-run oil company]ANCAP,” Uruguay's Ministry of Industry and Energy (MIEM) said in a statement.

Hence, the price of Super 95 gasoline will increase by UY$ 1.5 per liter and 50S diesel by UY$ 3 per liter against May's prices, the MIEM statement added.

The increases were below the suggestion of the Regulatory Unit of Energy and Water Services (Ursea), which recommended UY$ 6.41 in the first case and UY$ 10.75 in the second.

“[Cooking gas, known in Uruguay as] supergas will continue to be frozen until the end of September for the whole population as announced by the government on May 17, while the beneficiaries of social plans of the Ministry of Social Development will be able to access such refills at half the price,” the ministry added.

Last week, Lacalle Pou explained that every time the government did not increase the price of fuel as per international values “it is a sacrifice for Ancap,” since it is the company that absorbs part of the loss.

Uruguayan retailers from the Gasoline Sellers Union (Unvenu) had asked Lacalle to put the increase on hold “for a few more days” at least until June 1 as demand had grown exponentially, rendering Ancap unable to refill deposits at pumps in time, in addition to a May 31 labor protest.

Lacalle had insisted Ancap needed its accounts balanced. Otherwise, ”we know what happens.”