The Government Advances in Shrinking the Cold Zone Map to Increase Gas Tariffs
It is one of the priorities of the anarcho-capitalist administration, which bases its vaunted surplus on the adjustment that weighs on the pockets of the least privileged Argentines.
As is known, Javier Milei gathered his ministers and top officials at the Casa Rosada after the Te Deum on July 9, which for the first time included Diego Santilli as Chief of Cabinet, and had as one of its axes the steps to follow to accelerate the reduction of the so-called cold zones, which implies sharp cuts in residential gas subsidies.
In addition to the Milei brothers and Santilli, the following ministers were present: Luis Caputo (Economy), Alejandra Monteoliva (Security), Sandra Pettovello (Human Capital), Mario Lugones (Health), Carlos Presti (Defense), Juan Bautista Mahiques (Justice), and Federico Sturzenegger (Deregulation and Transformation of the State), as well as super-advisor Santiago Caputo, Senator Patricia Bullrich, and the President of the Chamber of Deputies, Martín Menem, among others.
Beyond any political infighting that sometimes jeopardizes the cohesion of the anarcho-capitalist administration, all expressed their agreement to shrink the Cold Zone Regime to drastically reduce subsidies for residential gas consumption as one of the foundations on which to sustain the vaunted fiscal surplus that simultaneously sustains the Government.
First cabinet meeting with Diego Santilli.
The official goal is for the Senate to pass the bill as it came from the lower house, sweeping away the expansion of subsidies that had been approved in 2021 and that, according to the libertarians, "denatured the focused nature of the system," extending the benefit to regions such as the province of Buenos Aires, where 55 cities will lose the benefits if the bill that already has half sanction is approved, in addition to populous municipalities in Córdoba and Santa Fe.
Regarding the Buenos Aires territory, large urban agglomerations with high winter demand will be affected, such as Mar del Plata, Bahía Blanca, Tandil, Azul, Olavarría, and most of the Atlantic Coast corridor.
The official project provides that in these places, the benefit will be restricted only to low-income families who qualify under the new Focused Energy Subsidies (SEF) system, implemented by decree.
Among the areas that maintain the generalized subsidy are those that already had historic benefits for residential consumption of natural gas and propane gas through networks, located in Patagonia, the Puna, and the Mendoza department of Malargüe.
Although several legislators have already expressed reservations about the government initiative, especially from the affected provinces, national senators will discuss the new Cold Zone map starting August 6, when the upper house resumes sessions after the winter recess.
