Argentina energy subsidy reform sparks legislative debate

Debate has intensified in Argentina regarding the proposed reform of the ‘Zona Fría’ (Cold Zone) regime, which provides natural gas subsidies to regions with low temperatures. National Deputy Karina Banfi criticized Senator Eduardo Vischi, arguing that the current legislative direction creates territorial inequalities. Banfi noted that municipalities in southern Buenos Aires province, such as Bahía Blanca, face disadvantages compared to Patagonia despite similar temperatures. She also questioned the fairness of subsidies that do not distinguish between income levels.

In the municipality of Bragado, more than 1,500 residents have signed a petition opposing the repeal of the regime. Local consumer information officials warned that if the project, which has already received partial approval in the Chamber of Deputies, is passed by the Senate, it could lead to significant increases in natural gas tariffs for local families. The 2021 law currently allows for discounts of between 30% and 50% on residential gas bills in designated cold zones, including parts of Buenos Aires province.