The Finance Ministry of Peru announced it would exclude some types of gasoline and diesel from the selective consumption tax on Sunday to fight surging prices caused by the Russia-Ukraine conflict.
The government said the measure would suspend taxes on gasoline, gasohol, and certain types of diesel until June 30, with a potential extension until December.
The government also said it has been taking measures to alleviate rising fuel prices, including subsidies which have prevented a rise of 81 U.S. cents per gallon in the price of diesel and a hike of $1.36 in the price of 10-kg gas cylinders.
Peru’s Economy Minister Oscar Graham said that the biggest threat to the country’s economy is the prolonged Russian invasion of Ukraine.
Meanwhile, President Pedro Castillo has approved a 10% increase in the minimum wage after many days of protests fueled by soaring inflation.
The minimum wage increase of around $280 is the first approved salary increase in four years, following a series of measures to end the six days of protests led by farmers and truckers.
© Fourth Estate
® — All Rights Reserved.
This material may not be published, broadcast, rewritten or redistributed.