Argentina pushes reform to cut residential gas subsidies in Zona Fría

President Javier Milei’s government is advancing a reform of the “Zona Fría” regime that would sharply reduce subsidies for residential natural‑gas and propane consumption. The proposal, which already has passed the lower house, seeks to keep the historic subsidy only for the Patagonia region, the high‑altitude Puna and the Malargüe district of Mendoza, while eliminating the automatic discount for the majority of households elsewhere.

If enacted, the change would affect more than 3.3 million homes, including about 1.24 million users in 94 municipalities of Buenos Aires province. Fifty‑five cities in Buenos Aires – such as Mar del Plata, Bahía Blanca, Tandil, Azul and Olavarría – plus several departments in Córdoba and Santa Fe would lose the blanket subsidy and would receive assistance only through a new targeted “Subsidios Energéticos Focalizados” system for low‑income families. The government argues the reform will curb a fiscal burden it calls “unsustainable”.

The Senate has postponed discussion of the bill due to insufficient votes, moving the debate to after the winter recess, with a session slated to resume on 6 August. Lawmakers from the north‑western provinces and opposition blocks have voiced resistance, making the outcome uncertain.