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The government estimates a sharp rise in fuel prices through Monday, with increases of 12.3 cents a liter for gasoline and diesel. This impact will be mitigated very slightly by additional tax cuts on petroleum products of 0.5 cents per liter for diesel and 0.3 cents per liter for gasoline, the Finance Ministry said in a statement. These cuts are intended to adjust the tax burden on fuel in order to prevent the state from collecting more taxes per liter due to the increase in the pre-tax price.
These increases reflect higher oil prices in the week that EU countries reached an agreement to boycott Russian supplies, although not yet completely. If confirmed, this increase will be the largest since the week of April 18, when diesel prices rose 17 cents a liter.
This week, the tax rate on petroleum products for the month of June will be determined equal to that which will result from the reduction of the value-added tax rate from 23% to 13%. But the Treasury notes that due to this month’s holiday calendar, which does not allow for a full estimation of market data, tax rates will be in effect for two weeks instead of one, to be adjusted again on June 17. . These rates represent “a temporary global reduction in the tax burden on fuel which will total 21.8 cents per liter for diesel and 25.1 cents per liter for gasoline.”
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