Mon. Jun 17th, 2024
Removal of subsidies could lead to over 500% increases for homes, industries, and businesses

On Tuesday, the Government is set to sign resolutions that will result in an increase in natural gas rates starting from April 1. This decision comes two months later than originally planned, with the Ministry of Energy and the National Gas Regulatory Entity (Enargas) initially intending to implement the increases in February. However, the Minister of Economy, Luis Caputo, delayed the decision in an effort to control inflation.

The new resolution sets wholesale gas prices at the Point of Entry to the Transportation System (PIST), which includes a combination of local production and imports. The impact of this resolution on users is still unclear, as official sources have not provided any responses. Residential users in different income categories will see varying increases in gas prices. For example, N1 households and some non-domestic users will experience a nearly tripled gas price in April, while low-income N2 users will see a more moderate increase. The prices are expected to rise even further between May and September.

The companies in the energy sector had requested a significant increase in income to make up for tariff arrears accumulated since 2019. The delay in updates and the devaluation of the peso against the dollar have contributed to the current situation. Despite these challenges, the Government is working to finalize updates with sector executives to ensure a sustainable energy system for the future.

By Aiden Nguyen

As a content writer at newscholarly.com, I delve into the realms of storytelling with the power of words. With a knack for research and a passion for crafting compelling narratives, I strive to bring forth engaging and informative articles for our readers. From decoding complex concepts to unraveling current events, I aim to captivate and educate through the art of writing. Join me on this journey as we explore the ever-evolving landscape of news and knowledge together.

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