Argentina Gas Subsidy Cut for 3.35 Million Users Angers Mayors’ Federation
ARGENTINA · ENERGY · POLITICS
Key Facts
- —The country Argentina has about 46 million people, and winters in its centre and south bring frost and snow. Some 9 million users are connected to piped natural gas, widely used for heating.
- —The background Since 2002 homes in Patagonia, the high Andean Puna and Malargüe in Mendoza have had 30 to 50 percent off gas bills under the “Zona Fría”, or cold-zone, scheme. A 2021 law extended it to much of central Argentina.
- —Why now On 24 September the Senate passed President Javier Milei’s bill rolling back that 2021 expansion. About 3.35 million users lose the automatic discount.
- —What happened On 26 September the Argentine Federation of Municipalities, which represents more than 500 mayors, called the change “another insensitive attack” on Argentine families.
- —The numbers In Buenos Aires province alone, 1.24 million households in 94 municipalities lose the automatic discount. The government expects to save 272.1 billion pesos (about US$178 million).
- —What it means for you Residents of Mar del Plata, Bahía Blanca, Córdoba or Mendoza face higher winter gas bills. Those who do not qualify for targeted help could see bills double, one estimate says.
- —Still open When the law is signed and published, when bills change, and whether mayors’ planned lawsuits can suspend it.
A federation of more than 500 of Argentina’s mayors has turned on President Javier Milei over a new gas law. It ends automatic discounts for about 3.35 million users outside the original cold zones.
The Argentine Federation of Municipalities called it an “insensitive attack” two days after the Senate passed the bill on 24 September. Bahía Blanca’s mayor says he will go to federal court, and other municipalities are weighing a joint case.
What the “Zona Fría” is
The cold-zone scheme dates from 2002. It gave homes in the coldest regions, where heating is not optional, 30 to 50 percent off their gas bills.
Every gas user in the country pays for it through a surcharge on the price of gas, now 7.5 percent. Until 2021 it covered about 950,000 households in Patagonia, the Puna and Malargüe.
A 2021 law pushed by the Peronist Máximo Kirchner added much of Buenos Aires, Córdoba, Santa Fe, Mendoza and San Luis. That raised the number of households covered to about 4 million, according to Infobae.
The government says the surcharge no longer covers the cost. It puts the scheme’s gap at 485 billion pesos (about US$318 million), at 1,524.75 pesos per US dollar on 25 September.
What the new law changes
Automatic discounts now return to the original cold zones only. In Buenos Aires province, Carmen de Patagones is the only district that keeps them.
Homes in the areas added in 2021 keep a discount only if they pass a means test. That test is the Targeted Energy Subsidies scheme.
The scheme excludes homes earning more than three basic household baskets, the official cost-of-living yardstick.
For a family of four, that cap is 4,816,491 pesos (about US$3,160) a month. Falklands War veterans, people with disability certificates and residents of registered informal settlements also qualify.
The discount will also shrink for those who keep it.
It will apply only to the gas price itself, not to transport, distribution and taxes. Estimates put the rise even in Patagonia near 25 percent.
What the mayors said
The Argentine Federation of Municipalities, known as FAM, is a national association of local governments. Its president, Fernando Espinoza, is the Peronist mayor of La Matanza, the country’s most populous municipality.
Espinoza signed the statement with vice-presidents Lorenzo Smith and Juan Manuel García. It called the change “another insensitive attack by the Milei government on the rights of Argentine families”.
“Removing this compensatory measure is a direct blow to families’ pockets,” it said. It warned of “enormous harm to millions of gas users” at a time of “unpayable tariffs” and “very harsh winters”.
The federation said it would keep working “to win back and defend every right”. It did not say what legal or political steps it would take.
Who is going to court
Federico Susbielles, mayor of Bahía Blanca, will go to federal court once the law is promulgated. He argues it breaches constitutional equality.
“Same temperature, same regime,” he said, according to La Pluma Diario. The ombudsman of General Pueyrredon, the district that includes Mar del Plata, is studying a collective injunction.
Jimena López, a congresswoman allied with former economy minister Sergio Massa, is preparing a similar joint case with south-eastern mayors.
Who pays more, and by how much
Infobae and the DIB news agency put users losing the automatic discount at 3.35 million. That includes about 680,000 in Córdoba and 500,000 in Santa Fe.
Ámbito gives a lower figure: more than 1.6 million users in over 90 municipalities could lose help if they fail the means test. It does not explain the gap.
The IERAL think tank, cited by DIB, estimated one case in Bahía Blanca. An average home’s monthly bill would double from 19,945 to 39,890 pesos (about US$13 to US$26).
A household in the same city that qualifies for targeted help would pay about 22 percent more, by the same estimate.
What comes next
The law must now be signed by Milei and published in the Official Gazette. The Energy Secretariat then has to write the detailed rules, and no date for new bills has been announced.
Mayors say they will sue once the law is promulgated, and any injunction would apply case by case. Argentine courts have suspended tariff rises before, but none has ruled on this law.
The change does not end gas subsidies in Argentina. Patagonia, the Puna and Malargüe keep a discount, and low-income households anywhere can still apply for targeted help.
Frequently Asked Questions
What is Argentina’s “Zona Fría”?
It is a scheme, created in 2002, that gives households in the coldest regions a 30 to 50 percent discount on gas bills, funded by a surcharge paid by all gas users. A 2021 law extended it to much of central Argentina.
Who loses the gas discount?
About 3.35 million users in areas added in 2021, including 1.24 million households in 94 municipalities of Buenos Aires province, lose the automatic discount. Patagonia, the Puna and Malargüe keep it.
Can affected households still get help?
Yes, if they qualify for the government’s means-tested energy subsidy scheme. For a family of four the income limit is 4,816,491 pesos (about US$3,160) a month, and the discount will apply only to the gas price itself.
When will gas bills change?
Not yet. The law still needs the president’s signature, publication in the Official Gazette and detailed rules from the Energy Secretariat, and several mayors plan to challenge it in court.
Sources: TN, FAM criticises the end of the Zona Fría regime, 26 September 2026, Ámbito, more than 500 mayors question the reform, 26 September 2026, El Día, more criticism of Zona Fría changes, 27 September 2026, Infobae, which localities lose the gas subsidy, 25 September 2026, DIB, five keys to the Zona Fría law, 25 September 2026, La Pluma Diario, mayors anticipate legal offensive, 26 September 2026, Puntonueve, municipalities weigh court action, 26 September 2026, Minuto Uno, Senate vote and means test, 25 September 2026. All retrieved 27 September 2026. The FAM statement is a press release, quoted as published in full by regional media. Peso figures converted at the wholesale rate of 1,524.75 pesos per US dollar on 25 September 2026.
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