Peru suspends some fuel taxes to tackle soaring prices

SANTIAGO, April 3 (Reuters) – Peru’s economy and finance ministry said on Sunday it would suspend taxes on the country’s most consumed fuels to tackle soaring prices caused by the Russian-Ukrainian conflict .

The measure suspends taxes on 84 and 90 octane gasoline, gasohol and certain types of diesel until June 30, with a potential extension until December, the government said in a statement.

Soaring fuel prices have sparked widespread protests from Peruvian truckers and farmers. The government has taken steps to mitigate rising fuel prices, including subsidies which it says have already prevented a 3 soles (81 US cents) per gallon rise in the price of diesel and a 5 soles hike ( $1.36) of the price of 10 kg gas cylinders.

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Oscar Graham, the country’s economy minister, told Reuters on Friday that the biggest threat to Peru’s economy was the protracted Russian-Ukrainian conflict. Read more

Inflation in Peru has reached its highest level in 26 years, the government announced on Friday, largely due to rising fuel and food prices. Read more

The government also announced it was raising the minimum wage by about 10% to 1,205 soles ($278) per month from May. The government said the increase was aimed at improving workers’ purchasing power after analyzing inflation and local economic performance.

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Reporting by Marco Aquino; written by Alexander Villegas; edited by Paul Simao and Marguerita Choy

Our standards: The Thomson Reuters Trust Principles.

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