Peru Implements Fuel Tax Suspensions

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. 

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