The Government freezes gas and electricity rates to avoid their impact on inflation

With the aim of consolidating a process of inflation reduction, the national government decided postpone the planned increases in electricity and gas rates corresponding to July.

The adjustment, now stopped by the Ministry of Economywas intended to improve the margins of companies that provide regulated public services for the transportation and distribution of electricity and natural gas.

The decision was made, in principle, only for July rates with the intention of not reheating the pressure on the cost of living in that month and take the foot off the accelerator with the application of more costs on households that have suffered a sharp loss of purchasing power. For this reason there will be no reduction in subsidies either.

Another item that was taken into account is the component of seasonality: in winter, gas consumption is usually higher and, consequently, what users pay as well.

In this way, the minister Luis Caputo He postponed the monthly adjustment that was going to be tied to a formula for estimating future inflation, not yet designed.

The reality is that with this freeze, electricity companies will have a delay in their rates of around 50% by the end of next month, and gas companies, 25%.