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[BUSINESS] · Argentina · 43 sources

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Argentina Senate approves reform to 'Zona Fría' gas subsidy regime

The Argentine Senate has approved a reform to the 'Zona Fría' (Cold Zone) gas subsidy regime, a move that has sparked significant political and legal opposition. The new law reverts the subsidy structure to the 2002 model, effectively excluding several provinces that were added to the benefit in 2021, such as much of Buenos Aires, Córdoba, and Santa Fe.

Under the new scheme, subsidies will only apply to the base price of the gas, excluding costs related to transport, distribution, and taxes. This change is expected to increase gas bills for many users. In Tierra del Fuego, officials warn that while the province remains in the regime, the reduced scope of the discount will hit household budgets hard. Senator Cristina López estimated that users in historical zones could see monthly increases of approximately 25,000 pesos.

The Argentine Federation of Municipalities (FAM) and various local leaders have condemned the measure as an attack on family rights. In the province of Buenos Aires, over 1.24 million households across 94 municipalities are expected to be affected. Municipalities including Bahía Blanca and Mar del Plata have announced intentions to challenge the law in federal court, arguing that the reform violates the principle of equality.

Entities

Agustín Coto · Argentine Federation of Municipalities · Bahía Blanca · Belén Monte de Oca · Buenos Aires · Cristina López · Enargas · Federico Susbielles · Javier Milei · Martín Pérez · Senate of Argentina · Senate of the Nation

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