Argentina to Halve Energy Subsidies as Imports Erode Reserves

Argentina gradually will cut in half subsidies on utilities after growing energy imports reduced its reserves, Cabinet Chief Jorge Capitanich told the Senate.

Argentina’s government will spend 2 percent to 2.5 percent of gross domestic product on subsidies including water, natural gas and electricity, he said today. The government now spends 4 percent to 5 percent of GDP on subsidies, paying nearly three times as much to buy natural gas abroad than what it cost to produce domestically, according to Capitanich.