Weekly Report - 25 September 2008 (ISSN 1741-7422)

ARGENTINA | Gas price rise. The planning minister, Julio De Vido, increased gas prices by between 10% and 30% last week, the second utility rate increase in as many months. In late July, he raised electricity prices by a similar amount. On both occasions he focused on the government's efforts to redistribute wealth: consumers of mains gas, predominantly wealthier households, will bear the brunt of the increases, subsidising the cost of gas cylinders, more commonly used by those on lower incomes, which will be reduced by more than half from Arg$40 (US$12.9) to Arg$16. De Vido said the extra revenue would also fund energy-investment plans to improve services. He hinted that there would be further increases, arguing that gas prices were still lower than in neighbouring countries.

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