Economy Politics Local 2026-01-21T19:45:57+00:00

Argentina to Cut Energy Subsidies for Most Users

As part of its agreement with the IMF, Argentina's government is introducing new rules for targeted energy subsidies. Starting February 2026, benefits will only be retained by low-income families, while most middle and middle-high income users will lose their eligibility. The government will analyze family income and assets to determine beneficiaries.


Argentina to Cut Energy Subsidies for Most Users

Buenos Aires, 21 (NA) – Amidst ongoing fiscal adjustments, thousands of users will lose their energy subsidies in the coming weeks after the Ministry of Economy published a key decree to that effect. To reduce public spending in line with the agreement with the IMF, the government will cut social assistance and restrict energy and gas subsidies only to those who need them most. Therefore, low-income users will retain the benefit, while a large portion of middle and middle-high income users will lose it. Through decree 2/2026, the Official Gazette published the requirements to access the benefit after the change in the system. It is expected to take effect in February and will leave out 80,000 users. Additionally, the online form was authorized to launch the new mechanism through the Registry of Focused Energy Subsidies (ReSEF), which is already available for completion. From now on, users who receive financial assistance to pay for electricity, gas, and cylinders will be registered in the new system. The procedure will be mandatory and must be carried out through the digital form, which will have the nature of a sworn statement. To determine who will keep the subsidies, the government will cross-reference data from ANSES and ARCA. It will also take into account the Registry of Access to Energy Subsidies (RASE), so those already registered there will not need to do so again. If there are changes in the family composition or economic situation, individuals must update the information digitally or in person at ANSES offices. Requirements The government will analyze both the income and the asset situation of all household members. It will also consider the conditions that may indicate the ability to pay, and verification of these conditions for any household member will justify the denial of the benefit. As stipulated, households with total family incomes exceeding three basic food baskets (CBT), currently at 3.93 million pesos, are excluded. Also excluded are those who own a car less than three years old, unless they have the Unique Disability Certificate (CUD). Previously, those with three or more vehicles five years old or less were excluded. Households with three or more real estate properties among all their members, a luxury yacht, an airplane, or corporate assets in the name of any member are also exempt. In contrast, households with a member holding a Family Housing Certificate, a member with a lifelong pension for Malvinas veterans, or at least one member with a CUD qualify as beneficiaries of the new focused subsidies. Which system is being replaced The new mechanism will replace the current segmentation into three income levels in effect since 2022. It will now differentiate only between those who will continue to receive the benefit and those who will lose it, in a simplified model.