In the middle of the inflationary slowdown already waiting for him consumer price index (CPI) is located below the 5%the sixth month of the year arrives with six key increasesamong them, electricity and gas due to the removal of subsidies, gasoline, rents, subways and Buenos Aires tolls.
On the other hand, at the end of May the Buenos Aires Government increased the processing of the Vehicle Technical Verification (VTV) in a 27%. The motorists who are obliged to carry out this management They must pay $38,014.57while the rate for owners of motorcycles The price became $14,293.73.
1) Removal of electricity and gas subsidies
The Government launches a “transition period” in the energy subsidies to “progressively transfer real costs to users”, from June 1 to November 30, 2024. The objective is to go from a generalized subsidies scheme to one of targeted subsidies for electricity and gas rates.
The six-month process will be a path in the direction of establishing the Basic Energy Basket. In any case, analysts pointed out that “The parameters with which the subsidies will be gradually released are still missing and there is neither the deadline nor the amount to be subsidized.“.
2) Fuel tax
Also as of June 1, the Government decreed to update the Tax on Liquid Fuels (ICL) and the Carbon Dioxide Tax (IDC) what makes up the price of gasoline “in order to stimulate the growth of the economy by guaranteeing a sustainable fiscal path”.
“If the June 1 tax increase is fully transferred to the price, super gasoline It could increase 1.2% in CABA and 1% in Córdoba. In July, the tax should rise by 115%, if it is fully transferred to the price, super gasoline could increase by a maximum of 18% in CABA and 16% in Córdoba,” explained the head of the Argentine Institute of Fiscal Analysis (Iaraf), Nadin Argañaraz.
3) Rentals
The rental contracts signed under Law 27,551which updates the rental price annually through the Lease Contract Index (ICL), will suffer an increase of 233.7% in June in front of a stage inflation year-on-year which, in April, stood at 289.4%.
On the other hand, the semiannual increase governed by the short-lived reform of the rental law (repealed by the DNU 70/2023) increase a 56.5%. This is indexing using the Casa Propia index.
Meanwhile, rents that are tied to inflation will be based on the CPI of the last 3 months February (21%), March (11%) April (8.8%) accumulated.
4) Tolls
After the 150% increase in the month of May, the city government will implement a new increase of 35% in the rate of tolls on the highways of CABA. The new tariff schedule, which will come into force as of June 1Goes from $903 up to $21,320 during rush hour, for vehicles traveling on Highways 25 de Mayo, Perito Moreno, Illia, Retiro II, Sarmiento, Salguero, Alberti and Paseo del Bajo will suffer the increases.
Rates on the 25 de Mayo Highway and Perito Moreno
- Motorcycles: $903.33 and $1,445.51 during peak hours.
- Light vehicles with up to 2 axles: $2,168.21 and $3,072.71 during peak hours.
- Light vehicles with 3 axles and/or with trailer: $3,432.89 and $5,058.99 during peak hours.
- 2-axle heavy vehicles: $3,432.89 and $5,058.99 during peak hours.
- 3-axle heavy vehicles: $4,379.60 and $11,744.12 during peak hours.
- 4-axle heavy vehicles: $6,685.07 and $16,803.05 during peak hours.
- Vehicles with more than 5 or more axles: $9,576.09 and during peak hours $21,320.05.
Rates on the Illia, Sarmiento and Salguero Highway
- Motorcycles: $542.09 and $650.36 during peak hours.
- Light vehicles with up to 2 axles: $903.33 and $1,277.44 during peak hours.
- Light vehicles with 3 axles and/or with a trailer: $1,626.08 and $2,348.84 during peak hours.
- 2-axle heavy vehicles: $1,626.08 and $2,348.84 during peak hours.
- 3-axle heavy vehicles: $2,168.21 and $5,601.02 during peak hours.
- 4-axle heavy vehicles: $2,554.78 and $6,142.97 during peak hours.
- Vehicles with more than 5 or more axles: $3,794.35 and during peak hours $10,660.07.
5) Subway passage
Despite the failure of the Justice what ordered suspend increases in subway fare until July 10the company SBASE confirmed that starting in June the price will rise again ticket price at $650as planned prior to the judicial decision.
The company that manages the subway in CABA can carry out this increase because the resolution of the Judge Elena Liberatori will come into effect on June 4. Furthermore, since SBASE already appealed the decision.
Source: Ambito
