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[BUSINESS] · Argentina · 52 sources

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Argentina Senate passes law reducing gas subsidies in Cold Zones

The Argentine Senate has passed a law reforming the Cold Zone regime, significantly altering gas subsidies for residential users. The reform, approved with 38 votes in favor and 8 against, reverts the subsidy scheme to its original 2002 criteria. While the Patagonia, Puna, and Malargüe regions will maintain their differential status, the benefits for areas incorporated during a 2021 expansion will be reduced or eliminated.

The measure is expected to impact approximately 3.35 million households nationwide. In the province of Buenos Aires alone, 1.24 million households across 94 municipalities—including major cities like Mar del Plata and Bahía Blanca—will lose automatic benefits. The reform shifts the subsidy from a broad geographic model to a more focused system based on socioeconomic criteria, such as household income limits.

Furthermore, the reform changes how discounts are applied. Previously, subsidies covered gas consumption, fixed charges, transport, and distribution. Under the new law, the benefit will be limited strictly to the price of the gas itself, excluding transport and distribution costs. This change is projected to increase bills for many users; for instance, in Tierra del Fuego, residential bills could rise by nearly 19%, and some senators estimate increases of 30% to 40% for others.

Entities

Abigail Mazú · Argentine Senate · Axel Kicillof · Buenos Aires · Buenos Aires Province · Federación Argentina de Municipios · Federation of Argentine Municipalities · Javier Milei · La Libertad Avanza · Martín Soria · Patagonia · Senate of Argentina

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