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Subsidy Removal Could Lead to Increases Exceeding 500% for Homes, Industries, and Businesses

On Monday, April 1st, the Government will sign resolutions that will result in an increase in natural gas rates per network. The official definition of the rate increase has been delayed for two months due to the Minister of Economy’s efforts to anchor inflation at lower levels. However, the decision to increase rates could not be delayed any longer due to the fiscal situation and the overall context of the energy sector.

The Energy resolution 41/2024 establishes new wholesale gas prices at the Point of Entry to the Transportation System (PIST), which are a key part of the bill along with transportation, distribution, and tax margins. The impact of this resolution on users is yet to be clarified by officials, but it is known that some households will see a near tripling of gas prices starting in April. Overall, gas prices are expected to rise significantly for all users between May and September, with some paying over four times the current rate depending on their location.

The Government’s decision to remove subsidies from high-income households, businesses, and industries will cause the price of gas to at least triple next month, with another extra jump between May and September. The rise in bills will be most noticeable in the winter when higher consumption is combined with higher energy prices. Despite concerns about

By Samantha Jones

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