The increase planned for July in electricity and gas prices will not be implemented in order to relieve inflation. What about fuels?
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.
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 objective of postponing the measures is to avoid additional pressures on the cost of living.
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 established for next month’s household consumption and, depending on the billing date, in principle most users would pay it in August.
Light
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.
- N1 (high income): Goes from $24,710 to $30,355 pesos (23% increase).
- N2: (low income) goes from an average bill of $6,295 to $12,545,260 (99% increase). Comprises 1.9 million users.
- N3 (average income) goes from $6,585 to $16,850 (156% increase).
Gas
In the case of gas rates, consumption in July will not increase either. That is to say, the user will pay exactly the same as in June.
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.
