MONTEVIDEO, Jan 7 (Reuters) - Uruguay will cut domestic fuel prices by up to 5.5 percent as a result of the recent plunge in global oil prices, the head of state energy company, Ancap, said on Wednesday, a move that could help lower the country’s stubbornly high inflation rate.
Ancap President Jose Coya told Reuters the cuts will come into effect on Thursday.
“Gasoline will be adjusted downward by 3 percent and diesel by 5.5 percent,” he said.
Brent crude oil recovered slightly on Wednesday after falling below $50 a barrel for the first time since May 2009 as traders took stock after a sharp price slide since the start of the year.
Uruguay’s inflation rate was 8.26 percent in 2014, above the official target ceiling of 7 percent. For the month of December, the government said consumer prices fell 0.53 percent.
Some analysts forecast inflation will fall close to the 7 percent target by March. (Reporting by Malena Castaldi, writing by Hugh Bronstein; Editing by Peter Galloway)