If there was ever a time to start riding a bike it is now. Gas prices in Argentina are among the most expensive in the region. Prices are now USD 1.16 per liter. At YPF, a liter can cost AR $18.45 and with more expensive brands the prices can go up to AR $18.85.
As of now, a barrel of petroleum costs USD 52.39 but even if the price were to lower, we probably wouldn’t feel it at the pump. According to Global Petrol Prices, the country tends to sit at 15 cents above the world’s average.
Why does it seem like such a struggle for Argentina to lower their prices? Well, there are a few factors to take into consideration. The devaluation of the peso, the high internal costs linked to climbing inflation rates, in addition to the country having historically lacked the investments needed to boost domestic production.
The irony for Argentina is that when the raw price falls internationally, it is falling in dollars and could therefore, effectively rise in pesos depending on exchange and inflation rates. So it may be cheaper for other countries at the moment, but not for Argentina.
With the almost inevitable pain felt at the pump some residents have taken to simply cross the border into Paraguay, where the price is USD 1 per liter. A 50 liter tank could be filled for AR $805 in a neighboring country versus AR $932 in Argentina.
One small piece of consolation is the fact that another country has it worse. Uruguay is currently facing USD 1.57 per liter, 35 percent higher than Argentina’s fuel costs.