Transportation Fare Increases in AMBA – July 2023
Starting this July, commuters in the Buenos Aires Metropolitan Area (AMBA) will face significant increases in public transportation fares. The government has announced fare changes for buses, subways, and trains, with hikes frequently exceeding 8%.
Increased Bus Fares
For services managed by the City of Buenos Aires, bus fares will increase by 4.1%. This change will raise the minimum fare for routes of up to three kilometers to 820.60 pesos. In contrast, users in the province of Buenos Aires will see a 4.3% rise, pushing the initial fare for the same distance to 1,059.28 pesos. The fare scaling will consider the distance traveled, which is crucial for daily commuters.
Subway Fare Changes
The Buenos Aires subway is not exempt from changes either, as it will also implement a 4.1% increase. As of July 1, those holding a SUBE nominalized card will now pay 1,621 pesos for a ticket, up from the previous 1,558 pesos. For individuals without a registered card, the cost will be substantially higher, standing at 2,541 pesos per trip. Special rates will be in effect for certain groups, such as a social rate of 567 pesos and a student fare of 226 pesos.
Toll Increases on Major Highways
The tolls on highways in Buenos Aires will also experience a 4.1% increase. For instance, on the 25 de Mayo Highway and Perito Moreno, light vehicles will be charged 4,613.65 pesos during normal hours and 6,538.29 pesos during peak hours. For other highways like Illia, Retiro II, and Sarmiento, the cost for cars will range from 1,922.15 to 2,718.21 pesos, providing further financial strain on commuters.
Rate Adjustment Mechanism
These new transportation rates are part of an automated updating scheme that leverages the Consumer Price Index (CPI) published by Indec. The CPI reported a base increase of 2.1%, coupled with an additional 2% for these fare adjustments.
Additionally, on July 15, national bus fares will rise from 728.28 pesos to 742.81 pesos, reflecting a 2% increase. Users who qualify for the Social Rate will pay 334.26 pesos, whereas those without a registered card will face charges of 1,485.62 pesos.
Staggered Train Fare Increases
The AMBA train system will also see a staggered adjustment. In July, the fare for the first section will increase by 8.6%, bringing it up to 380.10 pesos. This will be followed by further increases to 420.01 pesos in August and 449.83 pesos in September, indicating a total increase nearing 10.5% and 7.1%, respectively.
Rising Transportation Costs
According to the Interdisciplinary Institute of Political Economy (IIEP) at UBA and Conicet, the cost associated with transportation—which constitutes 40% of the AMBA service basket—spiked by 5.7% compared to the previous month. Consequently, the average household’s expenditure in this category has surged to 116,688 pesos, a staggering 75% year-on-year gain that significantly exceeds inflation rates.
Policy Changes and Social Rate Adjustments
Recently, the government announced a change in how the Social Rate is calculated. This modification aims to provide greater predictability in government expenditure while maintaining a 55% discount for holders of registered SUBE cards, benefitting over 5.5 million individuals, including retirees, domestic workers, and beneficiaries of various social programs.
With these upcoming increases, commuters in Buenos Aires will need to adapt to the rising costs while managing their budgets effectively. As public transportation becomes more expensive, it will be vital for users to stay informed about fare structures and available discounts tailored to their needs.