Montevideo, Uruguay – The Uruguayan government has announced that it will maintain the current system of monthly fuel price adjustments, which has been in place since 2021. However, authorities are evaluating a regulatory change to establish a minimum adjustment period of six months while also reviewing distribution costs.

Regulatory Changes and Price Adjustments

Minister of Industry, Energy, and Mining Fernanda Cardona stated that the government intends to modify the current regulation, which mandates price adjustments every 60 days. “We will propose a legal instrument to change the current timeframe,” she said.

The proposed changes aim to bring more stability to fuel pricing and address inconsistencies in cost structures within the fuel distribution system.

Review of Distribution Margins

In addition to modifying price adjustment frequency, the government is analyzing profit margins across the fuel distribution chain. The objective is to improve efficiency and reduce the financial impact on consumers. Cardona pointed out that some commercial costs are outdated, affecting market competitiveness.

During the previous administration, reforms were suggested across the production, distribution, and sales stages of the fuel sector. However, some key measures were not implemented. As a result, gasoline and diesel prices remain uniform across all service stations, limiting competition.

Price Parity and Additional Costs

Cardona also emphasized that the Import Parity Price (PPI) should be used as a reference but not as the sole factor in setting final prices. She highlighted that taxes, distributor margins, and service station revenues also contribute to fuel costs.

The government will engage in discussions with fuel distributors, transport companies, and service station owners to develop a more effective regulatory framework. “This is an issue that requires urgent solutions,” Cardona concluded.

Source: EL OBSERVADOR