The government has backed off from the planned increase in electricity and gas rates, while it will not apply adjustments to the fuel tax either.
This was announced by official sources to Noticias Argentinas.
In the case of fuels, the tax was to be increased by 115% and the impact at the pump was to reach 18% in the City of Buenos Aires.
The aim of postponing the measures is to avoid putting additional pressure on the cost of living.
The goal is not to overheat the pressure on the cost of living in that month and to lift the foot off the accelerator by applying more costs to households that have suffered a strong loss of
purchasing power.
The intention is to consider seasonality (that is, greater consumption due to winter).
The decision was initially made only for July rates with the intention of supporting the recovery of the population’s purchasing power.
The measure is in place for household consumption next month and, depending on the billing date, in principle most users would pay for it in August.
Earlier this month, the Government modified the maximum subsidized consumption caps and bonuses on wholesale electricity and natural gas prices for N2 (low-income) and N3 (middle-income) users in accordance with the Transition Period established by Decree No. 465/24.
The measure marks the beginning of a process to move from a generalized subsidy regime to a targeted one, in which the user can know the cost of kW of electricity and m3 of natural gas, which is identical for everyone.
It may also determine what assistance the State provides to users based on their ability to pay, which reaches up to a limited consumption limit by recognising a lower payment (bonus).
Taking an average bill consumption of 250Kw the increase in the different categories will be:
– N1 (high income): A bill of $24,710 to $30,355 pesos (increase of 23%). In July, if the consumer maintains the same consumption, he/she will pay the same amount, i.e. $30,355. This covers a universe of 1.5 million households.
– N2: (low income) goes from an average bill of $6,295 to $12,545,260 (99% increase). It comprises 1.9 million users.
– N3 (average income) from $6,585 to $16,850 (156% increase). It includes 1 million clients.
In the case of gas rates, July consumption will not increase either. That is to say, the user will pay exactly the same as in June, as long as their consumption is the same.
For the current month, increases in the established gas tariff schedule of 9.2% for the N1 segment, 33% for N2 and 10% for N3 were established.
Source: NA
