Due to the increases in wholesale prices and the decrease in subsidies, electricity and gas rates in the Metropolitan Area of Buenos Aires (AMBA) reach $36,000 average in June. From December to the sixth month of the year, Natural gas bills increased by 1,179% and electricity bills increased by 234%. in the Autonomous City of Buenos Aires (CABA) and the Buenos Aires suburbs.
These data come from the latest report of the IIEP Tariffs and Subsidies Observatory carried out by the UBA and Conicet. In June, The average cost of the electricity bill in the AMBA rose to $41,504, while the gas bill reached $36,136.
AMBA: after the reduction of subsidies, gas rates rose 1100%
With the progressive reduction of state aid applied by the Ministry of Energy to middle-income households (N3), subsidized consumption was reduced from 400 to 250 kw per month. Low-income households (L2) now have a subsidized limit of 350 kw per monthhaving to pay the full price for excess consumption.
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In the case of natural gas, the “bonuses”, as the Government now calls the subsidies, granted to low and middle income users on the price of the gas consumed, are of 55% for N3 (middle) and 64% for N2 (low income).
The study also noted that the cost of the basket of public services, which includes electricity, gas, water and public transportation rates, increased by 19% compared to the previous month. In June, a family allocated $139,356 to cover their energy, transportation and drinking water needs.
As of December 2023, these expenses amounted to approximately $29,000. Thus, from December to June, the basket of public services rose 365%.
In the province and City of Buenos Aires, electricity and gas bills exceed the average $36,000 after the increases in rates and the subsidized consumption cap.
Increases in gas rates: new values after the reduction of subsidies
The Government implemented an increase in the price of gas and moved forward with the gradual reduction of subsidies on June 1. Thus, the new average values of the rates for high, medium and low income users throughout the country are:
- High income (level 1): The average bill is $49,551.
- Low income (tier 2): The average gas bill is $35,308.
- Median income (level 3): The ticket reached $39,488 in June.
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This way, Low- and middle-income users saw a 173% increase in their gas bills in June, compared to the values of April, when the fixed charge was raised. Meanwhile, for level 1 households, the increase was smaller, with a variation of 130%, according to the IIEP Rates and Subsidies Observatory.
From December to June, Rates increased by 922% for N1 segments. Meanwhile, low- and middle-income users faced a more significant increase: 1,420% and 1,475%, respectively.
