Argentina debates municipal gas tax and LPG subsidies as national tariffs surge

The Honorable City Council of Mercedes (HCD) debated a proposal to eliminate the municipal Occupancy Tax on natural gas, arguing that the dramatic rise in national gas tariffs – more than 1,000% in the past two and a half years – is the primary burden on local households. Council President Mariana San Martín emphasized the need for a careful financial analysis, noting that removing the tax could jeopardize funding for essential services such as street maintenance, primary‑health centre supplies and community policing. The proposal was referred to the Finance and Budget Committee for further study.

Separately, Governor Gustavo Melella of Tierra del Fuego conducted a remote dialogue with residents of Río Grande and provincial officials to design a new subsidy scheme for liquefied petroleum gas (GLP). He reiterated the province’s commitment to guarantee aid for families that rely on bottled gas, highlighting that “the accompaniment of the gas subsidy is a great investment made largely by the State for a real need of many of our neighbours.” The meeting, attended by the provincial economy minister and local legislators, aimed to create a fair and participatory distribution of resources while also promoting financing tools to expand household gas connections.