Peru temporarily suspended the tax on the consumption of main fuels to mitigate the rise in the international price of oil due to the Russian invasion of Ukraine, the Ministry of Economy said on Sunday.
The measure exempts Excise tax (ISC) to 84 and 90 octane gasoline and some types of diesel until June 30, with the possibility of an extension until December, the ministry added in a statement.
The rise in fuel and other products such as fertilizers in Peru has caused protests by transporters and farmers who for six days until Saturday blocked some highways in the country.
In addition, there were demonstrations in the Junín region, the birthplace of the party Free Peru who brought the leftist president to power peter castle.
The Peruvian government has been taking some targeted measures to alleviate the impact on the Andean country of the international rise in crude oil, including subsidies for fuel and liquefied petroleum gas for domestic and vehicular use.
Since the rise in oil prices began, subsidies have prevented diesel from increasing by 3 soles (0.81 dollars) per gallon and the 10-kilo liquefied petroleum gas balloon from rising 5 soles (1.36 dollars), according to the Government. .
Minimum wage increase
The government of President Castillo also announced the increase of around 10% of the monthly vital wage in the country, to 1,025 soles (278.8 dollars) since May, after analyzing the evolution of inflation and local economic performance; and thus improve the purchasing power of workers.
Economy Minister Oscar Graham told Reuters on Friday that one of the biggest risks for the mining country’s economy is “the prolongation” of the war between Russia and Ukraine that is accelerating domestic prices.
Peru registered inflation of 1.48% in March, the government reported on Friday, the highest monthly rate in 26 years, due to the rebound in fuel and food prices.
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