Milei begins to slash energy subsidies for low-income Argentines

[Avocado]

This is going to hurt many low income people that are already struggling to survive.

Milei begins to slash energy subsidies for low-income Argentines​

Milei begins to slash energy subsidies for low-income sectors

Low-income homes will see the energy cost of their utility bills double on average in June, while middle-class families could see prices rise 155%.

www.batimes.com.ar

 

[Betsy Ross]

This is going to hurt many low income people that are already struggling to survive.

Milei begins to slash energy subsidies for low-income Argentines​

Milei begins to slash energy subsidies for low-income sectors

Low-income homes will see the energy cost of their utility bills double on average in June, while middle-class families could see prices rise 155%.

www.batimes.com.ar

It still is a tiny fraction of the actual cost of electricity. Argentines only pay about 5% of the real cost of electricity. So even if it doubles they are still way way under what is actually costs. The longer they delay these things the more pain there will be. Prices need to go way up and match true prices eventually.

 

[Vince]

It still is a tiny fraction of the actual cost of electricity. Argentines only pay about 5% of the real cost of electricity. So even if it doubles they are still way way under what is actually costs. The longer they delay these things the more pain there will be. Prices need to go way up and match true prices eventually.

Agree. No one likes paying more for bills but we are well below paying what a fair amount is. It's been like this for a long time. People can't expect to pay these crazy low rates forever. They need to come up. If you look at energy prices for other countries around the world it is very expensive relative to wages.

 

[Uncle Wong]

Agree. No one likes paying more for bills but we are well below paying what a fair amount is. It's been like this for a long time. People can't expect to pay these crazy low rates forever. They need to come up. If you look at energy prices for other countries around the world it is very expensive relative to wages.

True my friends in Colombia pay a lot of money for electricity. I'm not sure what it was but they said it was a big chunk of their monthly expense.

 

[Uncle Wong]

It sounds like the cuts in subsidies is paying off! $2.9 Billion. But many of the friends that I met in BA are complaining all the time now about the higher rates.

Argentina Cuts Energy Subsidies. The reformist Milei government in Argentina has cut energy subsidies in the Latin American nation by $2.7 billion in the first seven months of 2024, with the Energy Ministry claiming the country achieved an energy trade balance surplus of $2.9 billion in January-July.

https://www.reuters.com/business/energy/argentinas-energy-subsidies-cut-government-addresses-fiscal-deficit-official-2024-09-12/

 

[oil rush]

It sounds like the cuts in subsidies is paying off! $2.9 Billion. But many of the friends that I met in BA are complaining all the time now about the higher rates.

Argentina Cuts Energy Subsidies. The reformist Milei government in Argentina has cut energy subsidies in the Latin American nation by $2.7 billion in the first seven months of 2024, with the Energy Ministry claiming the country achieved an energy trade balance surplus of $2.9 billion in January-July.

https://www.reuters.com/business/energy/argentinas-energy-subsidies-cut-government-addresses-fiscal-deficit-official-2024-09-12/

And they want to keep increasing the rates. You are going to get big pushback from many different groups. My guess is we will see blowback at the beginning or middle of 2025 before the elections. You can't put all of this on the backs of the lower and middle class. Transportation, utilities, monthly expenses, healthcare.

Not going to be pretty.

 

[Johnny]

And they want to keep increasing the rates. You are going to get big pushback from many different groups. My guess is we will see blowback at the beginning or middle of 2025 before the elections. You can't put all of this on the backs of the lower and middle class. Transportation, utilities, monthly expenses, healthcare.

Not going to be pretty.

I think you're right @oil rush. I met a ton of business executives while I was in Buenos Aires. I went with @earlyretirement to 2 weeks of meetings every single day. Accountants, bankers, builders, Escribanos, business owners, vendors and most of them supported Milei but several that I speak to now while they are happy with some things, are leery about how things will turn out in 2025.

I am cautiously optimistic but too many factors in play.