With the beginning of November new increases arrive that will fully impact inflation. Electricity, gas and water will increase as a result of tariff segmentation and subsidy removal. In addition, there will be increases in the value of the cubic meter of CNG, the rent update index and the expenses.
As of November, the removal of subsidies will begin, which will impact the three levels of the income scale. In the first place, the 15% of users who are established as high-level residential users have their subsidies completely removed and start paying the full rate. The rest of the users begin to progressively withdraw assistance until they pay 100% of the fee in May 2023.
The segmentation of energy rate subsidies was launched last month and the second step will come into force in November. For some users, the increase in service will have a double impact, since they will suffer the removal of subsidies and the increase in rates from distributors.
In the case of natural gas, some 4.1 million households will stop receiving subsidized bills out of a total of 9.7 million registered customers. The segmentation scale indicates that users across the country will see an increase of 50% in November compared to September.
Based on the rental contracts that are concluded under the Rental Law, tenants who enter a property or renew their contracts must take the index of rental contracts (ICL) to carry out the update. Therefore, if this calculation is applied, the update percentage for this month is around 73% per year.
Compressed Natural Gas (CNG) will increase by nearly 5 pesos as of November 1, driven by increases at the wellhead, application of internal taxes and costs in the sector.