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Argentina Sets 2026 Energy Tariff Hikes, Scales Back ‘Cold Zone’ Subsidies in Budget Plan

Congress now takes up a plan targeting a 0.5% of GDP subsidy burden with ARS 6.1 trillion earmarked for energy.

Overview

  • Energy Secretary Daniel González told deputies that 2026 electricity cost shares will be set at 100% for N1 users, 43% for N2 and 67% for N3.
  • For natural gas, the government outlined 2026 cost shares of 68% for N1 users, 29% for N2 and 41% for N3, describing the adjustments as gradual to match supply costs.
  • The budget proposes reverting the expanded Zona Fría to its original six-province scope, lifting the surcharge on non-beneficiaries to 7.5%, and notes the current regime covers over 40% of users and subsidizes fixed charges.
  • Officials said roughly nine million households receive energy subsidies, with targets for 2026 of an average 67% user share of electricity costs and 61% for gas.
  • The government estimated that 84% of Camuzzi Gas Pampeana customers in Mar del Plata would pay ARS 52,000 or less in winter 2026, and highlighted Vaca Muerta oil output of 818,000 barrels per day in August.