The Argentine government has announced a 24.4% average increase for residential electricity prices in another move aimed at cutting subsidies and reducing the fiscal deficit. However, social tariffs will stay in place and continue to benefit to about 4.3 million customers. In March 2018, the government already announced 28% to 40% increases in residential gas prices.
In June 2018, the government announced that it would reduce energy and transport subsidies by 0.3% and 0.4% of gross domestic product (GDP) in 2018 and 2019, respectively, as per the US$50bn financing agreement to with the International Monetary fund (IMF). Subsidies have been gradually reduced since December 2015, which in turn contributed to inflation that will hit 30% in 2018 from nearly 25% in 2017). Power prices have been increasing since 2016 and the government increased prices by 34-43% between December 2017 and February 2018.