Argentina gas subsidy cuts spark tariff hikes and protests

In late May the Argentine Chamber of Deputies approved a partial amendment to President Milei's gas subsidy scheme, removing the so‑called “cold‑zone” benefits for provinces added in 2021, including Mendoza. The change is expected to cut subsidies for roughly one‑third of households in those areas, potentially doubling natural‑gas bills. Local unions, workers’ groups and environmental organisations launched a campaign titled “Mendoza es zona fría”, gathering signatures and staging protests to demand that legislators reject the adjustment and increase the distribution of social gas bottles.

The proposal also threatens to strip subsidies from about 3.3 million homes nationwide, with tariff increases reported above 100% in the Buenos Aires province and the Greater Buenos Aires area. Families reliant on bottled gas face soaring prices—up to 260% higher than a year ago—while the government‑funded Garrafa social program remains fixed at a level that no longer covers market costs. Critics claim the budgetary justification for the cuts is inaccurate, noting the fund was surplus through 2025, and warn that the removal of the subsidy fund could exacerbate the hardship for low‑income households.