Gas watch in Argentina: price increase, bill for “ cold zones ”


Residential gas prices in Argentina will rise 6-7% in June, local newspaper Cronista reported.

Distributors MetroGas, Naturgy, Camuzzi, EcoGas, Litoral Gas, Gasnor and Gas Nea have signed associated documents with gas regulator Enargas, he said.

As part of the deal, distributors will get a guaranteed 25-30% increase in revenue in exchange for the suspension of administrative and legal proceedings against the state for price freezes and non-compliance with price review rules. , the newspaper added.

Last month, the government announced an increase in electricity prices.

The cash-strapped Peronist government, which took office in 2019, froze utility prices in 2019 as the economy collapsed.

Annual inflation was 46.3% in April, according to data from the statistical agency Indec.

According to a May report by Argentina’s General Mosconi Institute of Energy, energy subsidies have increased in dollars and total energy subsidy spending for 2021 could reach US $ 10 billion.

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On a related note, Enargas’ controller Federico Bernal said a US $ 200 million gas price reduction project for some users in colder parts of the country would be funded by an increase the tax on the sale of gas at the wellhead.

In turn, gas bills for users in warmer areas would increase, by around 5 pesos (around 5 US cents) or more, depending on the number of beneficiaries, he said in an interview with La Voz newspaper. and posted on the regulator’s website.

Lawmakers introduced a bill known as the Cold Zones Bill, which establishes discounts of 30-50% for vulnerable users of piped gas.

Under Mauricio Marci’s previous administration, Argentina saw large increases in electricity and gas prices – by more than 1,000% in some places – as authorities not only worked to reduce the deficit budget by reducing spending on subsidies, but also to stimulate infrastructure investment.


About Christopher Easley

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