Argentina Senator Carambia Proposes 50% Cut to Fuel Taxes

Senator José María Carambia, representing Santa Cruz, presented a bill to amend Law 23.966 and restore a differential fuel‑tax regime for the Patagonian provinces—Santa Cruz, Tierra del Fuego, Chubut, Río Negro, Neuquén, La Pampa, plus the Patagones district of Buenos Aires and the Malargüe department of Mendoza. The proposal argues that Patagonia’s vast distances, harsh climate and high logistics costs justify special tax treatment.

The same bill also calls for a nationwide reduction of the fuel‑tax rate by 50 %. Carambia contends that fuel costs affect the entire production chain, influencing inflation, transport, food prices and the competitiveness of key sectors such as tourism, fishing, logistics and agriculture. He frames the measures as part of an "energy federalism" approach to balance regional disparities and boost economic activity across Argentina.