October 03, 2024 [Reuters]- Argentina’s state oil firm YPF said on Monday it will lower gasoline and gasoil prices beginning on Tuesday.

The firm’s price reduction will be 4% on gasoline and 5% on diesel, but the impact on pump prices will be limited to decreases of 1% and 2%, respectively, YPF said in a statement.

“The decrease will not be directly reflected at the pump,” because there is a 3% increase in the price of gasoline as a result of the Argentine peso’s devaluation and the tax increase, YPF said.

The company also noted that its decision to cut fuel prices was taken to reflect international and local market conditions, particularly a fall in the international price of Brent crude oil.

This is YPF’s first fuel price reduction since the start of 2019, a company source said.

Gasoline prices in the South American country have risen a cumulative 51% so far this year and registered a 340% hike year-on-year in September, according to the source.

Argentina faces a complex economic situation but its high inflation rate has been slowing due to strong austerity measures applied by President Javier Milei’s government.

Globally, oil prices were on track on Monday to fall for the third month in a row as a strong supply outlook and questions around demand outweighed fears of a conflict escalation in the Middle East.

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