From March there will be an increase in gas bills. The margins of the distributors, which are the companies that bring gas to businesses, services and industries, will increase. A figure was circulating in the Government -close to 40%-but other industry sources have specified that it was not yet defined.
“March inflation is already high. Maybe the increase is doubled or something, so that it has less impact”, said an entrepreneur in the sector who asked not to be identified. Spending on public services – which had almost no impact on inflation from mid-2019 to mid-2022 – began to be felt in September, after the withdrawal of some subsidies and the increase in bills, with water as one of the benefits that has risen the most.
During the winter of last year, a middle-class family in Buenos Aires paid between $1,500 and $2,000 for gas bill. That was for an average consumption -95 cubic meters-, and contained a large state subsidy. During the coming winter, that ticket won’t go below $4,000 whether the family has been labeled a “high income” or wants to continue to have access to the “savings dollar.”
The increase will be at least 120% compared to what was paid in the winter of 2022, and corresponds to the price of gas itself. Depending on the increase in distribution amounts, the year-over-year increase can be between 150% and 170%.
In the March increase, there will be an improvement in the margins charged by distributors and carriers.
With annualized inflation approaching 100%, these increases would allow energy subsidies to remain unchanged or to decrease slightly from last year. The savings will be due to lower importsstarting this year there will be more local production with the construction of the gas pipeline that will connect Buenos Aires with Vaca Muerta.
Furthermore, the government has anticipated the purchase of LNG vessels. He accepted the deal at a price that would have been lower than winter’s. which will bring a relief of 1,500 million dollarsaccording to official sources.
As the gas prices on your bills increase, the respective taxes will also increase. Taxes are estimated to account for almost a quarter of your gas bill. Until now, a $1,500 utility bill had about $500 in taxes. Now, a bill approaching $3,200, as a result of the gas increase, will result in more than $800 in taxes.
The Secretary of Energy has established that Metrogas and Naturgy customers – both located in the city of Buenos Aires and in the suburbs – pay $34 for every cubic foot of gas required. Until now, they were paying $22. And, as of mid-2022, it was $16. This increase applies to customers called N1s, aka “high incomes.”
There are 3.45 million families that have not been registered in the register of gas subsidies. That means they believe they don’t need the benefits, or that they want to continue accessing the “savings dollar” or stock dollar trades. People who prefer to keep the state discounts will not be able to exchange currencies.
It may also be that among those 3.45 million customers – identified as N1 – there are families who do not know that they have to register in order to keep the state discounts. 2.3 million accounts have asked to keep some discounts, while 3.4 million have identified themselves as “low-income” and will continue to enjoy heavy concessions.
The Energy Ministry will allow the “middle class” (who earn less than $520,000 and don’t want access to the savings dollar) to consume a base block at a gas price similar to last year’s ($12 per cubic meter from 2023, against 14 dollars it was 2022). However, once they pass the “allowable” block, they have to pay $34 per cubic foot.
When segmentation began, households earning more than $390,000 a month for the household as a whole were considered high-income. Now, That milestone is over $520,000. It is estimated that nearly a third of Metrogas and Naturgy households remained within the N1 group, with bills rising between 150% and 170%.
Source: Clarin
