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The Government confirms that it will segment subsidies and there will be an increase in rates

2021-09-20T00:29:38.449Z

It will allocate 1.5% of GDP to electricity and gas subsidies in 2022. In 2021, it is 2.2%. That will imply increases in public services that will average 38% to 40% in middle sectors.



Martin Bidegaray

09/19/2021 21:14

  • Clarín.com

  • Economy

Updated 9/19/2021 9:14 PM

The Government confirmed that it will advance in a

"segmentation in the subsidy of the tariffs

that allows to build a more progressive tariff scheme".

In this way, it will remove generalized subsidies and several sectors will have to face increases in those services.

The measure, 1.5% of GDP, "said Economía in a statement. That will represent a little more than a trillion pesos, out of a total GDP of $ 6 trillion, according to the data presented in the" law of laws. "This newspaper

However,

Resolution 46 has already been reformulated by the previous administration

-which generated legal conflicts since the summer of 2019-, for which these amounts were no longer being allocated.

"The GasAr Plan adopted in 2020 allowed - based on the agreement and dialogue with the private sector - to establish an average price of US $ 3.50 per million BTUs," said Economía. 

"The expiration of resolution 46 will allow, in terms of subsidies, a reduction of approximately

US $ 600 million with respect to 2021," they

observed in Economy.

Several specialists consulted disagree with these numbers.

Gas producers charge US $ 3.50 per million BTUs of state subsidy, but they also receive what the gas distributors pay them for their services.

In addition,

few companies were able to have resolution 46

, since it was reformulated by the previous government.

According to Economy, this decision

frees money

for "infrastructure works for the sector foreseen in the 2022 budget for more than $ 100,000 million -mainly in the construction of gas pipelines." import substitution and lower cost of gas, "they noted.

Although there is great agreement in the gas market on the need for a greater number of gas pipelines, the proposal of large trunk works - linking different parts of the geography - would be more expensive. In the Cambiemos administration, Gustavo Lopetegui - the last Secretary of Energy - proposed a third transportation gas pipeline that cost US $ 2 billion.

That equates to more than double what is budgeted now.

Source: clarin

All business articles on 2021-09-20

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