Argentina ends gas bill subsidies for millions
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Argentina’s government enacted a law Tuesday ending automatic gas bill discounts for 94 municipalities in Buenos Aires province and districts in four other provinces.
The new law reverses a 2021 expansion of the “Cold Zone” subsidies, returning to the original 2002 regulations. Previously, residents of towns with low temperatures automatically received a discount. Now, most will lose that benefit unless they enroll in a new, means-tested program.
The reform impacts 3.35 million households nationally, including 1.24 million in Buenos Aires province. Patagones remains an exception, as it is formally part of the Patagonian region which retains the subsidy. To continue receiving assistance, households must demonstrate financial need, earning less than three times the country’s Total Basic Basket, having a registered disability, or receiving specific pensions, but the exact enrollment process remains undefined.
The law also changes how the discount is calculated, applying it only to the Price of Entry into the Transportation System, not the full bill. This could increase costs even for those who still qualify for assistance. The government will fund the remaining subsidies with a surcharge of up to 7.5% on the price of natural gas, a system valid until December 31, 2031.
