The Argentine government has once again postponed the update to the liquid fuels tax (ICL), moving the effects of the hike to May, through Decree 217/2026 published this Wednesday in the Official Gazette. In this way, the Executive Branch decided to again defer the remaining increases in the amounts of the Fuel Tax and Carbon Dioxide Tax, derived from the corresponding updates for the 2024 and 2025 calendar years, for unleaded gasoline, virgin gasoline, and diesel. In the official document, it was explained that the decision to postpone the increase was made «with the purpose of continuing to stimulate economic growth through a sustainable fiscal path», considering it «necessary, for the products in question, to again defer the remaining increases originating from the aforementioned updates». This decision comes in a scenario of decreasing pressure on energy prices due to the war in the Middle East, seeking to avoid a greater impact at the pumps and mitigate the effect on inflation that has been accelerating in recent months. The Executive Branch has been making partial adjustments to fuel taxes. Since last September, it was ordered that the increases be calculated based on inflation and updated on a quarterly basis. Additionally, it established a fixed differential amount for diesel fuel for consumption in the Patagonian provinces, the Partido de Patagones in Buenos Aires, and the Department of Malargüe in Mendoza. The new date to apply the deferred increases is May, pending the cessation of the armed conflict between Iran and the United States and Israel and for oil to move away from the US$100 zone. Since mid-2024, the administration of Javier Milei has split or postponed on several occasions the update of the taxes set on fuels, with the objective of avoiding a significant impact on the prices displayed at the pumps and consequently on inflation. The postponements of the fuel tax increases decreed in 2025 implied a waiver of fiscal revenues for a total of US$2.326 billion, according to the estimate of the consulting firm Economía y Energía.
