He Javier Milei’s government made official a regime change in subsidies for electricity and gas rates in Argentinawhich will fully impact low- and middle-income households starting this month.
According to four resolutions of the Ministry of Energy published this Wednesday in the Official Gazette, the new tariff tables for electricity established increases of up to 155.9% for medium income levels, 99.3% for low income levels and 22.8% for high income levels.
Meanwhile, gas consumption for home networks will have an increase of up to 32% for low-income users and 9% for medium-income users, percentages based on the costs of electricity generation, transportation rates, distribution and taxes.
Electricity and gas rates in Argentina
“This marks the beginning of the process to move from a generalized subsidy regime to a focused one, in which the user can know the cost of kilowatts per hour of electrical energy and the cubic meter of gas natural“, indicated the Ministry of Energy in a statement.
The withdrawal of subsidies to the different strata of society is part of the fiscal adjustment launched by the Executive of Milei with the intention of progressively transferring real energy prices (without subsidies) to end users.
Prices will be adjusted according to production costs and energy transportation and distribution rates will increase based on the expected inflation for the current month, looking at future prices to “avoid indexation and have minor increases, in case of that the slowdown continues.”
“In times of scarcity and adjustment of State resources, it is necessary to review and reorganize subsidies to contribute to fiscal balance without neglecting help to vulnerable users,” the statement adds.
