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Argentina a boon for privatized companies.

Frozen fares, massive subsidies: the government bails out bus companies again.
Juan Manuel Astiazarán (The Left Daily) 30 October 2026

To avoid another fare increase on the 104 national bus lines, Milei agreed to more funding for the transportation companies. The companies had demanded an additional $150 billion, while millions of users continue to suffer from high fares and increasingly poor service.

The government has decided to increase subsidies for the companies operating the 104 national bus lines to prevent, at least for now, another fare increase. The measure will be officially announced this Friday in the Official Gazette and aims to quell the demands of the transportation companies without immediately passing the increased costs on to passengers. However, the fare freeze will be offset by a further transfer of public funds to the private companies.

The decision was announced this Thursday during a meeting at the Ministry of Transportation, which was attended by representatives of the main business chambers in the sector: the Buenos Aires Urban Transport Business Chamber (Cetuba), the Passenger Transport Business Chamber (CEAP) and the Argentine Association of Motor Transport Entrepreneurs (AAETA).

The employers' associations had demanded an additional $150 billion to sustain the system's operation without raising fares. They also demanded that the government begin paying off a $40 billion debt. For now, the government has ruled out another fare increase and agreed to increase subsidies.

More subsidies to sustain the business
The policy of freezing fares through increased subsidies is not new. The government prevents the increase from being passed directly on to passengers, but maintains a system in which the state ends up covering a significant portion of the private companies' operating costs.

National bus fares have remained frozen since July. The minimum fare is $742 and the maximum reaches $1,337. The situation differs in the City of Buenos Aires and the Province of Buenos Aires: in the City of Buenos Aires, the minimum fare will increase by 3.9% starting in November, reaching $956, while in the Province of Buenos Aires the increase will be 5%, with a minimum fare of $1,263.

According to data from the Interdisciplinary Institute of Political Economy (IIEP), an organization affiliated with the University of Buenos Aires (UBA) and the National Scientific and Technical Research Council (CONICET), bus fares have increased by 1,513% since December 2023. The current fare freeze comes after a sharp increase in public transportation rates that eroded the purchasing power of millions of workers.

A system that is becoming increasingly expensive and deteriorating The transportation crisis has been brewing for some time, but it deepened with the austerity policies and subsidy cuts implemented by successive governments. Fares increased faster than inflation and wages, while ridership steadily declined. Currently, buses have lost approximately one-third of their passengers.

In addition to the fare increases, there are infrequent services, vehicles in poor condition, and precarious working conditions for those employed in the sector. More and more people are seeking alternative transportation options, in a context where motorcycle sales are growing and ride-hailing apps are expanding.

Official concern is also explained by the impact of fares on people's wallets. In September, inflation was 1.9%, above the 1.7% recorded in August. For October, private estimates placed the monthly increase between 1.7% and 2%. In this scenario, transportation represents a daily expense that is difficult to avoid for those who need to travel for work, study, or other activities.

Who pays and who decides on transportation?
The conflict once again highlights the limitations of a system organized around private companies that manage an essential public service. When costs rise, the companies demand more subsidies or higher rates. If the government refuses to pass these increases on to consumers, the state ends up allocating more resources to ensure the business continues.

As detailed in the new newsletter from La Izquierda Diario , Impacto Real , this system has remained in place since April 2002, when, through Decree No. 652/2002, the government of Eduardo Duhalde created the subsidy system that launched the Integrated Motor Transport System (SISTAU). This established the logic that continues to this day: what isn't covered by the fare is paid for with public funds.

That same logic prevailed during the Kirchner administrations until 2015, with relatively low tariffs and a subsidy system that guaranteed extraordinary profits for the companies. Since Mauricio Macri took office, this approach has shifted, with a significant focus on tariffs, although the companies have continued to receive substantial government funding, even to this day.

But this effort doesn't necessarily translate into improved service. Passengers continue to face expensive journeys, insufficient frequencies, and dilapidated vehicles, while workers in the sector suffer from working conditions and wages that are also part of the crisis.

The fundamental problem is what kind of transportation model is needed. Instead of limiting the discussion to how much companies should charge or how much the state should contribute, it is necessary to debate who manages the system, how public resources are used, and what mechanisms exist to guarantee the quality of service.

That is why it is necessary to discuss how to move towards a model that puts at the center the needs of those who travel and work every day, and not the profitability of a handful of businessmen who only prioritize continuing to fill their pockets.
https://www.laizquierdadiario.com/Boleto-congelado-subsidios-millonarios-el-Gobierno-vuelve-a-salvar-a-las-empresas-de-colectivos

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