Argentina’s government has advanced its targeted energy subsidy reform, shifting costs to consumers while tightening eligibility criteria.
Argentina’s far-right administration formally concluded the consultation period for its new Targeted Energy Subsidies program (SEF, in Spanish), moving forward this neo-liberal measure.
The National Executive Branch has received the background information and technical evaluations needed to move forward with the definitive restructuring of the subsidies, marking the end of the current transition period.
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While the authorities claim there is a need to ensure consistency in the economic costs of supply, the service companies’ income is not being adjusted. Instead, the full burden of the tariff is being shifted to consumers—a cost that was previously covered by the state.
El Gobierno Nacional avanza con un nuevo esquema de subsidios energéticos focalizados
👉 Se unifican las categorías en “con” y “sin” subdidios
👉 La ayuda será para hogares con ingresos menores a 3 canastas básicas
👉 Empezará a regir en enero 2026➡️ https://t.co/v3SFNADk71 pic.twitter.com/mMEG0q71SM
— Secretaría de Energía (@Energia_Ar) November 28, 2025
What’s SEF About?
The initiative includes the adjustment of reference prices for natural gas at the System Transport Entry Point (PIST, in Spanish), propane gas, and the Seasonal Electricity Price (PEST, in Spanish).
The technical guidelines include:
- Basic Energy Basket (CBE, in Spanish): The subsidy will be determined based on a basic consumption block deemed necessary according to the bioclimatic zone of residence.
- Income Criteria: The State will cover the excess only if the cost of the CBE exceeds a specific percentage of the total household income.
- Asset Assessment: Eligibility will be determined through data cross-referencing on property ownership, vehicles less than 10 years old, prepaid health plans, and foreign currency expenditures will be used to determine eligibility.
Thus, access to the subsidy is restricted to households whose total monthly income is less than 3 Total Basic Baskets (CBT, in Spanish), according to the Indec’s measurement. As of December 2025 values, this threshold stands at 3,640,000 pesos.
Regarding the income caps, the previous system allowed earnings of up to 3.5 CBT; the new regulation, however, reduces this margin, meaning the benefit will be withdrawn from a segment of the population previously categorized as middle-income (N3).
Furthermore, the criteria not only considers the total amount but also the proportion that energy expenditure represents of the household’s income.
The State intervenes when the cost of the Basic Energy Basket—defined as the block of minimum necessary consumption according to the bioclimatic zone—exceeds a determined percentage of the household’s income (set between 10 and 15 percent). The subsidy covers only that difference.
Meanwhile, a household is excluded from the subsidy, regardless of its declared income, if any member owns a vehicle less than 10 years old, is the owner of two or more properties, possesses luxury assets, or pays for private health insurance outside of their employment.
Finally, the Tiers N1, N2, and N3 are eliminated, and the system is now divided into “households with a subsidy” and “households without a subsidy.”
Por decisión del gobierno nacional, y a pedido de Estados Unidos, desde enero de 2026 la mayoría de las familias argentinas perderán los subsidios en la luz, el gas y el agua. Con esta medida se pretende ahorrar 1.000 millones de dólares aprox, que irán a las arcas del FMI y del… pic.twitter.com/jpdYJAPn7j
— Luis Barranco (@BarrancoAnaya) December 1, 2025
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