Argentina Moves to Cut Gas Subsidies Under Zona Fría Reform

The Argentine Chamber of Deputies approved a bill to overhaul the "Zona Fría" gas subsidy regime with a medium sanction (132 votes in favour, 105 against, four abstentions). The reform narrows automatic subsidies to the Patagonia, Puna and Malargüe regions and limits benefits elsewhere to households meeting strict vulnerability criteria. Government estimates indicate that about 1.6 million homes could lose the automatic discount, while the Buenos Aires provincial government warns that up to 1.7 million users in Santa Fe alone could see gas bills rise by as much as 50 %.

Buenos Aires Governor Axel Kicillof condemned the measure, calling it “un gran error” that will bring “consecuencias de todo tipo” for millions of Argentines and urging the Senate to block the law. Lawmakers from La Libertad Avanza, PRO and allied blocs supported the proposal, while Union por la Patria, Frente de Izquierda and many opposition deputies voted against it. The bill now proceeds to the Senate for a final decision.

If enacted, the change will shift subsidies from a broad, geographically based system to a targeted one, aiming to reduce fiscal strain but risking considerable tariff increases for many households across 15 provinces.