Overview
- FADEEAC's Transportation Cost Index showed a 1.91% rise in May, a slowdown from April's 2.42% and far below March's 10.15%, according to reports published on June 4.
- The index accumulated a 20% increase from January through May and a 48% year-on-year rise, keeping overall cost pressure high despite the monthly moderation.
- Fuel, energy and general operating costs were the main drivers in May, with General Expenses up 11%, Material Rodante up 2.23%, Repairs up 1.79%, Personnel (drivers) up 1.7%, and Fuel up 1.67%.
- Authorities and YPF have delayed full fuel-tax updates and extended the 45-day 'buffer', which has limited retail pass-through even as wholesale gasoil prices rose roughly 33% year-to-date.
- Worsening road infrastructure and weaker economic activity are boosting repair and maintenance costs and reducing freight demand, which increases uncertainty about future tariff adjustments and sector viability.