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ECONOMY | 27-03-2024 16:13

Bye subsidies, hello soaring prices: Sharp gas increases on way

First update will be applied in April; the following between May and September and the last one from October to December. Strong impact on high income households, shops and industries.

President Javier Milei's Government has defined the increase of gas from Monday, April 1, with the removal of subsidies at the retail price of the supply, battering high income households, shops and industries.

The coming hikes to prices might even surpass 300 percent, and will be divided into three sections.

The decision was made on the basis of a resolution by the Energy Secretariat and published on the f, within the context of the new rate chart for users of grid natural gas. 

The Energy Secretariat explained that the new wholesale values in the PIST Transport System Entry Point were established by the removal of subsidies and will affect bills, because the price of gas is one of the components of the final rate. This must be added transport and distribution components, and thus the final impact on bills will be even greater.

The adjustment will have its first update in April; the second between May and September and the third from October to December, as per the resolution. The increases will be applied on residential and so-called “general service” users.

The new values for user groups are:

– High income (level 1): Starting in April they will pay between US$2.79 and US$2.95 for the price of gas. In May, this will rise to between US$4.26 and US$4.50 per million BTU.

– Low income (level 2): The price of gas will go from US$0.74 to U$S0.78, starting in April. The current value is US$0.70 per million BTU.

– Middle income (level 3): In April, they will pay between US$1.10 and US$1.17 for their blocks of subsidised consumption. Extra consumption will be paid at full price.

Unlikes high income households, users in levels 2 and 3 will not have any changes to the value of gas during the winter or the spring.

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