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Politics The Government delays the removal of transport subsidies so that it does not impact inflation - Infobae

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The Government delays the removal of transport subsidies so that it does not impact inflation - Infobae​


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March 14, 2024

There will be no increases in April for buses or trains in the City of Buenos Aires and the Conurbano. The differential price will begin to apply for users who do not have the SUBE card in their name

By Eduardo Menegazzi


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The Government's objective is to eliminate transport subsidies (Photo: Franco Fafasuli)
The Minister of Economy, Luis Caputo , said it in December a few days after taking office, and it is also now repeated by officials who pass through the Casa Rosada. One of the instruments to reduce the deficit in public accounts is the removal of transportation subsidies. However, the impact that this measure may have on inflation numbers delays the decision. At least for now in April there will be no increases in trains or buses in the metropolitan area. Yes, the differentiated rate will begin to apply for those people who do not have the SUBE card registered in their name.



The last adjustment was made at the beginning of February and the minimum ticket went to $270 for buses and $130 for rail services. Resolution 5 of the Ministry of Transportation, which previously depended on the Ministry of Infrastructure and was later absorbed by the Caputo area, established in its article 11 that the tariff values “may be adjusted bimonthly or for a longer period.” They expected that movement at least from the chambers that bring together the automotive transport sector. But in Economy "they do not have these modifications planned." And they have already drawn up the scheme that will be in force.

Yes, the differential price will begin for those users who do not have their SUBE card registered as of April 1 in the AMBA . Transportation sources affirm that “more than 2 million people have already regularized their situation” and also that “the registration rate has multiplied by ten on weekdays” since this provision was communicated. Those who do not have it in their name will pay $430 instead of $270 for the minimum section that goes up to 3 kilometers by bus and double the minimum in the case of trains. In the latter case, instead of $130 they will pay $260.

It is not known exactly how many more cards remain to be registered. “This information cannot be confirmed precisely, because there are many cards in circulation, which means that a user has more than one card,” they explained from the secretariat in charge of Franco Mogetta from Cordoba .

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The fare schedule for buses and trains that will be in effect in April, with a differential price for those who do not have the SUBE card registered in their name.

The Government's intention is that in three years transportation will no longer have subsidies . To achieve this objective, it was proposed that a third of what companies received be reduced by approximately 35% per year. At the end of February of this year, in another resolution, Transportation decided that the amount in this item be raised to more than 122 billion pesos, something that had not been updated since November.



The AMBA bus owners calculate that the minimum ticket to cover the maintenance costs of the 18,500 units in circulation should be $1,100 . They say that on average they currently receive $200 for each trip (there are discounts for social attributes), another $600 for the current subsidy and that there is a gap of $300 that the Government has not yet been able to resolve.

The estimates include, among other maintenance items, the prices of fuel, spare parts, tires, the depreciation of the units and labor costs. According to the latest joint agreements reached with the Automotive Tram Union (UTA), a driver will earn a basic salary of $737,000 from April.

They also expected that the minimum in April would go to 380 pesos because in the meetings they held with the national authorities they had been told that the new adjustments “were going to be in accordance with the inflation” that was recorded in recent months. They do not rule out this formula in Balcarce 50 although they are very cautious since if they apply it “it could overheat the numbers in the April index.”

This Friday, meanwhile, the Government of the City of Buenos Aires will hold a public hearing in which the new values it wants to apply to subway fares will be discussed. The company Subterráneos de Buenos Aires (SBASE) called a public hearing to formalize the new rate table, which contemplates a jump to $574 in April, which implies a 360% increase in the current rate, which is $125. and a price of $667 in May and $757 in June.


Aside from this increase, the RED SUBE discount and the benefit for frequent passengers will continue to be valid , which represents 38%. Consequently, while the user travels the most, discounts of 20%, 30% and 40% are automatically applied once they exceed 20, 30 or 40 monthly trips, respectively.
 

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