Argentina Raises Oil Export Withholding Tax Rate

According to Argentine media reports on the 14th, Argentina’s Ministry of Energy announced an increase in the country’s oil export withholding tax rate. Local media outlets such as the Argentine News Agency quoted the Ministry of Energy as saying that the export withholding tax rates for conventional oil fields in Jujuy Province, Santa Cruz Province, Mendoza Province, and Neuquén Province will rise from 3.36% to 8%. Analysts pointed out that amid the rise in London Brent crude oil prices due to Middle East conflicts, this move will encourage local Argentine oil producers to sell heavy crude oil to domestic refineries at lower prices, reducing the impact of international oil price increases on domestic fuel prices. The Argentine government had lowered the export withholding tax rate for conventional oil fields earlier this year. According to Argentina’s “Horn News,” a short-term shortage of oil in the international market could benefit Argentine oil exports, but if tensions in the Middle East persist, it will push up domestic oil and gas prices in Argentina, further fueling inflation. Currently, about 35% of Argentina’s oil production is exported abroad. (Xinhua)