Gas cylinder subsidy frozen: The Ministry of Human Capital continues the adjustments quietly.

While the price of gas cylinders continues to rise, the government has frozen the subsidy that the most vulnerable families should receive for heating or cooking. Today, a 10-kilogram gas cylinder costs around 15,000 pesos , but the state subsidy remains at 1,539 pesos, a value that hasn't been updated since September 2023. In practice, the Hogar Program is disappearing without any official announcement from the Ministry of Human Capital .

In August of last year, the government decided to deregulate the liquefied petroleum gas (LPG) market , eliminating price caps on the grounds that competition would regulate prices. Since then, the price of a gas cylinder has increased by 281.8% , according to data from the Office of the Consumer and User Ombudsman ( Deuco ). But the subsidy hasn't budged a cent. Thus, the aid that previously covered more than half the price of a gas cylinder now barely touches 10% in Buenos Aires.

In December 2024, the Ministry of Economy suggested a reference price of 10,500 pesos per cylinder, but the market didn't comply: currently, it costs around 15,000 pesos in distribution centers and can reach 25,000 pesos if ordered with home delivery. In this context, the fixed subsidy amount became completely outdated.

Deuco notes that in September 2023, the subsidy covered 56% of the cost of a gas cylinder. By December of last year, it had already fallen to 14.7% , and today it stands at just 10.3% , meaning families must cover the bulk of the expense from their own resources. Added to this is the fact that the gas cylinder distribution market is highly informal, with prices varying by region.

According to data from the 2022 National Census, 44% of Argentine households lack access to natural gas and rely on gas cylinders or other methods for cooking and heating. Of the more than 8 million households surveyed, 7.5 million use some type of alternative fuel. In northern provinces such as Chaco, Formosa, Misiones, and Corrientes, more than 90% of homes do not have access to mains gas.

In total, more than half of the population in 13 provinces across the country relies on bottled gas. This means that gas cylinders are not an exception, but a structural necessity for millions of people. But instead of strengthening the Hogar program, the government decided to freeze it, while prices skyrocketed.