Government Reduces Subsidies On Natural Gas And Water

News: The Argentine government has cut subsidies on natural gas and water by approximately 20%. The move, which is aimed at narrowing the country's growing fiscal deficit, could help the government save up to ARS13bn (US$1.6bn). The proceeds from the subsidy cuts are expected to be used to cover utility company costs as well as finance social expenditure, according to Economy Minister Axel Kicillof and Planning Minister Julio de Vido. These reduced subsidies will not be applicable to industrial users. President Cristina Fernández said, 'We will keep subsidies for industrial clients so they can keep producing for the benefit of the country,' reports Bloomberg. The reduction in the subsidies is expected to be made in three phases in April, June and August.

This article is tagged to:
Sector: Country Risk, Oil & Gas, Water
Geography: Argentina

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