Concerned about inflation, the Government decided to increase the dose by postponing the increase in gas scheduled for February 1st. Instead, authorities will proceed with updating residential electricity bills first, while the rectification of the transport ticket remains suspended, which was supposed to come into force starting next Thursday.
According to official sources, the order came from the Minister of Economy, Luis Caputo, who decided to give priority to electricity, despite the first public hearings being those on gas. The idea is to increase the seasonal price (PEST) starting from February. distributors pay and cut subsidies to electricity producers, which will impact the March elections.
This value is one of the four components of the bill rate along with the cost of distribution, transportation and taxes. The last time it was updated was in February last year, when Alberto Fernández’s government launched the segmentation of subsidies. “We don’t know the date well, but they should publish the new seasonal price in the next few days,” industry operators said.
The change of program would be due to the decision of the mitigate the impact of tariffs on inflation, in the midst of a flurry of increases to which this Thursday you see added an 11% adjustment in gasoline. Some consultancies, such as EcoGo, had estimated that gas increases could add up to 2 points over February’s CPI and electricity, close to 1 point in March.
Although Javier Milei celebrated December inflation data, which showed a record increase of 25.5%, the government faces cross-pressure to reduce, on the one hand, the pace of price acceleration and, on the other ‘other, advance the elimination of subsidies achieve a financial deficit of zero, a goal of which It depends on the disbursement of 4.7 billion dollars negotiated with the International Monetary Fund.
If the current pattern is maintained, public spending will increase The electricity sector would rise to 5,230 million dollarsaccording to official data.
“It seems that the gas increase is postponed, it is confirmed, we do not know the reasons for the decision, but it would happen in March. We do not know who it depends on, but I can imagine that it is a question of ordering some increases, so that they do not occur this month and another one occurs, the hearing happened in a timely manner, it’s not legal, it’s political,” an energy industry source said.
At last Friday’s public hearing on electricity tariffs, Energy Minister Eduardo Rodríguez Chirillo warned that the system is “on the verge of collapse”and AMBA’s two service distributors, Edenor and Edesur, have proposed distribution fee increases of around 90%, while calling for updated monthly adjustments for inflation.
In this context, the official ratified his intention to abandon the segmentation of electricity and gas subsidies for an energy basket concentrated in “vulnerable” sectors.. The idea was to gradually reduce subsidies in February, March and April until they were completely eliminated, a plan that will now be extended over time. “We are still working on it,” official sources said.
As for transportation, the government plans to start implementing increases of 250% starting Thursday, with minimum fares of $270 for bus service and $130 for rail service. But Justice accepted the amparo presented by the mayor of Esteban EcheverríaFernando Gray, who received an appeal from the Nation yesterday, so the update remains pending.
Source: Clarin
