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Today, by means of Emergency Decree No. 601/2019 (the "New Decree"), the National Executive Branch improved in AR$ 1.50 the reference exchange rate for crude oil and fuel commercialization, and reduced the original scope of the price freeze set by Urgency Decree No. 566/2019 (the "Original Decree"). Likewise, by means of Decree No. 607/2019 the increase of the fuel tax scheduled for September 1, 2019, was postponed and will remain unchanged at least until November 30, 2019.

Hereunder, the outline of the Original Decree compared to the New Decree:

Topic Original Decree New Decree 601/19
Scope Wholesale and retail fuel market Retail fuel market
Price freeze term Until November 13, 2019 No changes
Reference exchange rate for the sale of gasoline
and diesel fuel for gas stations
AR$ 45,19 = USD 1 AR$ 46,69 = USD 1
Reference exchange rate for the sale of crude
oil between producers and refiners
AR$ 45,19 = USD 1 AR$ 46,69 = USD 1
Reference crude oil 59 USD/bbl No changes

These changes aim to (i) avoid affecting the wholesale fuel market with the price freeze; (ii) partially compensate the different industry players by improving their products commercialization prices with regards to the Original Decree; and (iii) keep unaltered - at least until November 13, 2019 - the fuel prices at gas stations.

Finally, the New Decree indicated that the reference values and the established caps may be modified by the Energy Secretariat.

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