The Supreme Court of Argentina has overturned cuts in home-heating gas subsidies that were introduced in early 2016 by the new President, considering that the government had to hold public hearings before reducing home heating gas subsidies.
In early 2014, the Argentinian government already announced the reduction of heating gas subsidies by 20% in order to save up to US$1.6bn, which would cover utilities' costs and go to social programmes. The subsidy cut was to be carried out in three stages, in April, June and August 2014. In January 2016, the new Macri government cut energy subsidies and raised utility rates, considering that frozen tariffs had swollen the fiscal deficit during previous governments. These measures led gas prices to sky-rocket (+1,000%) in some places and triggered public outrage and legal challenges. The cuts in subsidies prompted public protests, in a context of rising gas demand (particularly cold winter), soaring tariffs and rampant inflation (40%). Consequently, the government of Argentina introduced a cap on increases in gas prices, limiting the rise in gas bills at 400% for households and 500% for businesses.
In July 2016, a regional court ruled that the gas price rises across the country were invalid; the government appealed the ruling but failed to convince the Supreme Court.
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