Argentina energy budget faces cuts despite Vaca Muerta surplus

Argentina's government is planning a significant reduction in the 2027 budget for the energy, fuels, and mining sectors. According to a report by the consultancy Economía & Energía, funds for this sector are projected to fall 19.4% year-on-year, with the 2027 budget set at US$ 4,024 million compared to the US$ 4,990 million credit in 2026.

Energy subsidies are also expected to decrease, dropping to US$ 3,212 million, which represents a 48.6% reduction from 2024 levels. The largest adjustment is targeted at Cammesa, where planned expenditures are expected to fall by 45.1% to US$ 1,779 million. To meet these budgetary goals, estimates suggest necessary tariff increases for residential users with subsidies (26%), residential users without subsidies (9%), and commercial users (19%).

This fiscal tightening occurs alongside strong performance from the energy sector. Between January and August 2026, the sector accumulated a trade surplus of US$ 7,834 million, while fuel and energy exports reached US$ 10,667 million during the same period.