Argentina's Executive branch introduced partial increases to the Liquid Fuel Tax and Carbon Dioxide Tax on unleaded petrol and diesel for May 2026, while delaying full implementation of outstanding tax updates by one month to 1 June 2026.
The Executive branch of the Argentine government issued Decree 302/2026 on 29 April 2026, which modifies previous regulations to adjust the timeline and amounts for fuel and carbon tax increases in Argentina. This decree specifically targets the Liquid Fuel Tax (ICL) and the Carbon Dioxide Tax (IDC), which were established by Law No. 23.966.
Under Law No. 23.966, these taxes are set as fixed amounts in pesos per unit of measure. These amounts are legally required to be updated quarterly based on the variations of the Consumer Price Index (IPC) provided by INDEC. These updates are scheduled for January, April, July, and October of each year, taking into account the inflation from the preceding calendar quarter.
The decree sets specific fixed-amount increases for taxable events occurring between 1 May and 31 May, 2026.
For May 2026, partial tax increases will apply. Unleaded petrol will see an additional tax of USD 10.398 per litre under the Liquid Fuels Tax, plus USD 0.637 for the Carbon Dioxide Tax.
Diesel faces a USD 9.269 increase under the Liquid Fuels Tax and USD 1.056 for the Carbon Dioxide Tax.
Diesel is sold in Patagonia, including the provinces of Neuquén, La Pampa, Río Negro, Chubut, Santa Cruz, Tierra del Fuego, the Patagones District of Buenos Aires, and the Malargüe Department of Mendoza, which will receive differential treatment with an additional USD 5.019 levy.
The decree also moves the date for the remaining tax increments—originally scheduled for 1 May 2026 to 1 June 2026. This effectively grants a one-month extension for the full implementation of the outstanding tax updates from previous years.
The provisions of Decree 302/2026 officially entered into force on 1 May 2026.
