Commuters in Buenos Aires will see subway fares quadruple Friday morning, a consequence of President Javier Milei’s austerity drive.
Prices on Latin America’s oldest subway system will rise to 574 pesos (64 cents) from 125 pesos, one of steepest overnight changes since Milei’s government took office December 10. While the subway is regulated by the City and operated by a company, Milei is cutting federal subsidies for public transport across the board, forcing some local governments to raise prices.
An Argentine judge lifted a temporary court order Thursday that had suspended the scheduled price increase, allowing the plan to move forward, according to newspaper La Nación.
Prices for buses and trains in the Buenos Aires metro area have already gone up too, but neither with a one-time move like the subway’s. In fact, Milei’s government has postponed additional transport price hikes, and the jump in subway fares was supposed to happen earlier this year. Rides on the subway were scheduled to reach 757 pesos by June, according to the City government’s Official Gazette in February, though it’s unclear now if prices will still go up again next month.
While the heavily subsidised subway fares were widely seen as unsustainable, Argentines nationwide were already struggling with 289 percent annual inflation, lagging wage growth and a deepening recession even before Friday’s price hike.
by Patrick Gillespie, Bloomberg
Comments