Argentine Senate passes gas subsidy reform for cold zones

The Argentine Senate approved a reform of the Cold Zone Regime on Thursday by a vote of 38 to 8, converting the bill into law after the lower house gave it half-sanction in May. The measure rolls back the 2021 expansion enacted under the previous administration and restricts residential gas subsidies to households earning up to three basic baskets, currently about 4.7 million pesos, as well as people with disabilities and Malvinas veterans.

The session was marked by procedural tension when Senator José Carambia attempted to break quorum by refusing to take his seat. Acting president Bartolomé Abdala allowed a 15-minute window, during which Senator Edith Terenzi spoke in support of the bill, enabling the chamber to reach the required number. Security Minister Patricia Bullrich then pushed for a single vote on the general and particular texts, ending the session quickly.

“The benefit will be concentrated on gas generation and not on distribution, which represents a significant part of the final cost of bills.”

The Peronist bloc withdrew at the start of the debate, demanding a recess, and only returned after quorum was secured. The government also committed to implementing electricity subsidy compensations for provinces in warmer regions as part of the political agreement that secured the votes.

Patagonia, Malargüe, and the Puna retain the differential treatment they held under the original regime. The reform also shifts the subsidy mechanism from gas distribution to generation, altering how the final benefit is calculated for users in affected provinces such as Buenos Aires, Santa Fe, Córdoba, San Juan, and Mendoza.