• Sun. May 26th, 2024

Gas Price Hike: What You Need to Know as the Increase Goes into Effect

BySamantha Jones

Mar 27, 2024
Subsidy Removal Could Lead to Increases Exceeding 500% for Homes, Industries, and Businesses

On Tuesday, the Government will sign resolutions that will increase natural gas rates per network starting on Monday, April 1. The rise in bills will be most noticeable in the winter when higher consumption is combined with higher energy prices.

The official definition of the rate increase comes two months late. The Ministry of Energy and the National Gas Regulatory Entity (Enargas) were prepared to implement the increases in February, but the Minister of Economy, Luis Caputo, decided to wait in an effort to anchor inflation at lower levels. Despite concerns about the impact on low- and middle-income households, the new rates will be implemented to address the energy sector’s financial challenges.

The Energy resolution 41/2024 establishes the new wholesale gas prices at the Point of Entry to the Transportation System (PIST), which are a key part of the bill along with transportation, distribution, and tax margins. The impact of this resolution on users is yet to be clarified by officials, but it is known that some households will see a near tripling of gas prices starting in April.

Overall, gas prices are expected to rise significantly for all users between May and September, with some paying over four times the current rate depending on their location. Subsidies will be removed from high-income households, businesses, and industries causing the price of gas to at least triple next month with another extra jump between May and September.

By Samantha Jones

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