Argentina moves to cut gas subsidy, risking bill spikes in Santa Fe and Córdoba

The national government has introduced a bill to overhaul the "Zona Fría" gas subsidy scheme, aiming to revert to the pre‑expansion model and save an estimated 200‑400 billion pesos. The proposal would remove the geographic‑based benefit for large parts of Santa Fe and Córdoba, affecting roughly 600,000 residential users.

In Santa Fe, eight departments – Rosario, General López, San Lorenzo, Caseros, Constitución, Iriondo, San Martín and Belgrano – could see more than half a million households lose the subsidy, with vulnerable families facing increases of up to 50 percent on their gas bills. Deputy Diego Giuliano warned the change would hit retirees and low‑income earners, calling it “insensate” and “a call for social imbalance.”

In Córdoba, 13 departments including the provincial capital and key areas such as Calamuchita and Río Cuarto would be excluded, prompting Governor Martín Llaryora to label the measure “a madness” that would drive costs “exponentially” during winter. Critics argue the reform shifts from a climate‑based aid to a narrowly targeted income‑based subsidy, leaving many middle‑class households unprotected.