Argentina to hike gas prices nationwide

BUENOS AIRES, March 29, 2018 – Natural gas prices across Argentina will see a maximum 40% increase on April 1, Minister of Energy Juan José Aranguren announced at a press conference on Wednesday.

Different rate adjustments will be applied to residential consumers falling into three categories, with price hikes of 40% for low-consumption users, 32% for average users and 28% for high-consumption users.

The increases come on the heels of public hearings with gas distributors in February, during which Metrogas and Gas Natural Fenosa had requested that rates rise by 47% for households and 60% for industrial consumers.

Argentina previously raised gas prices by 45% in December 2017.

During the press conference, Minister Aranguren also said he anticipated an eventual decline in gas prices, depending on Argentina’s gas production.

“In the next four years, there will be a surplus in the production of gas from 30 mcm to 35 mcm [1.06 bcf to 1.24 bcf], which will allow the prices paid by the consumer to fall,” he said.

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