Argentina’s ruling party warns of economic fallout without gas price hike

9 Jul 2016   Argentina

Argentina’s court-ordered suspension of natural gas price hikes could slam consumers with faster inflation and higher taxes, a ruling-party leader warned Friday while also calling on the Supreme Court to intervene as social tension swells. “If there are no increases, the cost of energy will be paid with taxes and resources of the Treasury, and this will generate inflation,” Federico Pinedo, the Senate’s provisional president, said on Radio Mitre. Pinedo spoke a day after a federal court suspended the 400%-500% increases in gas bills nationally, arguing that the conservative government of President Mauricio Macri failed to hold public hearings for the hikes, as required by law. Pinedo said the increases are needed to encourage investment for rebuilding energy supplies after a decade of decline. Article Continues below… Every day, Platts Energy Trader provides a unique perspective on the energy marketplace, including comprehensive coverage of both the natural gas and […]

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