Fuel Prices in Uruguay: Why Drivers Pay Among the World's Highest
Uruguay consistently ranks as one of the most expensive places on Earth to fill a tank. At a recent retail pump price of $2.339 per litre for gasoline — that's roughly $8.85 per US gallon — the country sits at 163rd out of 170 nations, meaning only a handful of countries charge more. In local terms, a litre runs about 93.61 UYU. Diesel offers modest relief at $1.547 per litre, but even that is well above the global average gasoline price of $1.484 per litre.
Why Are Uruguayan Pump Prices So High?
The single biggest driver is the state's role in the fuel chain. Uruguay imports nearly all of its crude oil — it is not an oil producer — and refining and distribution run through ANCAP, the state-owned energy company that holds a long-standing monopoly on the import and refining of petroleum products. Because there is no domestic crude, every litre reflects the full cost of imported oil plus shipping, refining, and a heavy layer of taxation.
Taxes and regulated margins are the second major factor. Uruguay applies IMESI (a specific excise tax on fuels) on top of VAT (IVA) at 22%, one of the higher standard rates in the region. These levies fund a substantial share of public revenue and, combined with ANCAP's regulated price-setting, mean the pump price is largely an administrative decision rather than a pure market outcome. Since 2021 the government has used a "price parity" methodology (PPI) that benchmarks domestic prices against an import-equivalent reference, which has tied local prices more tightly to international crude swings.
The Currency and the Trend
Because crude is bought in dollars but sold in Uruguayan pesos, the UYU/USD exchange rate matters enormously. A weaker peso pushes the dollar-denominated price up even when global oil is flat. Over the past decade the trend has been firmly upward: from a low of just $1.062 per litre on 18 July 2016 to a peak of $2.333 per litre on 8 June 2026, against a ten-year average of about $1.60. Today's price near the all-time high reflects both elevated global crude costs and the cumulative effect of taxes and the parity-pricing rule.
Unlike oil exporters that subsidise consumption, Uruguay does the opposite — it taxes fuel to support its budget and, indirectly, its energy transition. Notably, the country already generates the vast majority of its electricity from renewables (wind, hydro and solar), so high pump prices coexist with a remarkably clean power grid.
How Uruguay Compares Globally
Uruguay's prices put it in the same expensive tier as wealthy European nations. It is comparable to high-tax economies such as Finland and the Alpine states of Switzerland and Liechtenstein, even though Uruguayan incomes are considerably lower — which is why fuel feels especially costly for local drivers. For a different model, compare wealthy Singapore, where high prices come from deliberate vehicle-ownership policy rather than import dependence. You can see how every country stacks up on our world fuel prices overview.
FAQ
Why is gas so expensive in Uruguay?
Uruguay imports all of its crude oil through the state company ANCAP, then layers on heavy fuel excise taxes (IMESI) and 22% VAT. With no domestic oil and an import-parity pricing rule, the result is a retail price around $2.339 per litre — among the highest in the world.
How much does a litre of fuel cost in Uruguay?
Gasoline costs about $2.339 per litre, or roughly 93.61 UYU, which works out to around $8.85 per US gallon. Diesel is cheaper at about $1.547 per litre.
Does Uruguay produce its own oil?
No. Uruguay has no commercial oil production and relies entirely on imported crude, refined and distributed by the state-owned ANCAP. This import dependence, combined with taxes, is the main reason pump prices are so high.