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ECONOMY | 16-11-2017 11:22

Gas prices to rise 45% from December

The government had suspended a hike to gas prices in October as the mid-term elections approached. The increases will raise the average household gas bill to $277 pesos per month.

Gas prices in Argentina are set to rise by an average 45 percent from December, the Energy and Mining Ministry predicted Wednesday in a presentation held in La Boca.

The Macri government considered a 19 percent increase in gas prices, a 40 percent increase in transportation and distribution costs and a 15 percent rise in wholesale prices, in its latest attempt to wind down the effects on consumption of the previous government’s energy subsidies. 

Most businesses will see an increase of 58 percent, while residential properties with low gas consumption are expected to see a 56 percent average increase for a monthly bill of around $227 pesos excluding taxes, said Marcos Porteau, the ministry’s sub secretary of Exploration and Production.

The government is currently considering an increase to electricity prices in line with the Energy and Mining Ministry’s 2016 economic forecast for energy prices.

Wednesday’s announcement comes after the government, wary of any electoral consequences, postponed the gas price hike in October.

-TIMES

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