President Milei Hits Argentines With New Increase in Service Rates
Police try to contain citizen protests in Argentina, Oct. 31, 2024. X/ @voceditalia
November 1, 2024 Hour: 1:48 pm
On Thursday night, social organizations joined in a ‘National Blackout’ to protest recent hikes.
This week, Argentine President Javier Milei approved a series of increases in public service rates, set to take effect on November 2. The new measures include a 2.5 percent rise in electricity rates and a 2.7 percent increase in gas rates.
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At the provincial level, the Province of Buenos Aires authorized an 8 percent increase in electricity rates, which will directly impact bills corresponding to October consumption.
The scope of increases extends to other services as well. Agua y Saneamientos Argentinos (AySA) will implement a 4 percent hike in water and sewage services for the Buenos Aires Metropolitan Area (AMBA), following a 5 percent rise in October.
Rentals are not exempt from this inflationary trend. Contracts tied to the repealed Rental Law will see an adjustment of approximately 227 percent, according to the Rental Contract Index (ICL). Once these contracts end, rental price adjustments will depend on negotiations between landlords and tenants.
Another significant development is the 50 percent increase in taxi fares in the Autonomous City of Buenos Aires (CABA), which took effect on November 1, closing out the rate adjustment scheme for the second half of the year.
On Thursday night, social organizations joined in a “National Blackout” to protest recent hikes in public service rates in Argentina.
Between November 2023 and October 2024, electricity rates rose by an average of 433.6 percent, with an uneven impact across different social groups. For example, while average wages rose only 154 percent, the electricity rate for the N3 population segment (middle class) surged by 758 percent. The N2 segment faced increases of 555 percent, while the minimum wage grew by only 86 percent over the past year.
Natural gas services have followed a similar trend: between November 2023 and September 2024, rates rose by 164 percent, with a proportionally more severe impact on low- and middle-income sectors, while high-income segments experienced significantly smaller increases.
teleSUR/ JF Source: Pagina 12 – El Destape
