Commuters in Buenos Aires were taken aback by a sudden 360% increase in subway fares, marking one of the most significant price hikes in President Javier Milei's stringent budget austerity campaign in Argentina. Following a series of hearings, a judge lifted an order that had temporarily halted the scheduled fare increase, allowing the change to come into effect on Friday morning. This move impacted office workers in Buenos Aires as they navigated through the turnstiles of South America's oldest subway system.
Public transportation fares are a contentious issue in Latin America, where inequality is deeply rooted. Previous incidents of social unrest triggered by subway price hikes, such as Chile's mass protests in 2019, highlight the sensitivity of the matter.
Overnight, the cost of a single subway ride in Buenos Aires surged from 125 pesos (14 cents) to 574 pesos (64 cents), intensifying the ongoing cost of living crisis in Argentina. Some commuters expressed dissatisfaction, noting that they were now paying triple for a service that was visibly deteriorating.
President Milei's strategy involves cutting public spending on subsidies and state companies as part of a bold free-market experiment aimed at restoring Argentina's credibility with foreign investors and curbing hyperinflation. However, these deregulation and austerity measures have led to a spike in inflation, currently standing at 289% annually, placing Argentina among the countries with the highest inflation rates globally.
This recent fare increase marks the third time this year that subway fares have been affected, with prices escalating from just 80 pesos last December. Milei's reduction of federal subsidies for public transportation has compelled city governments to raise fares. While bus and train prices in Buenos Aires have also been gradually increasing, the subway experienced a one-time substantial price surge.
City officials in Buenos Aires announced that fares would further rise to 650 pesos (73 cents) on June 1, with another increase to 757 pesos delayed until August 1 to lessen the impact on commuters. The historically low fares have been beneficial for residents, particularly those residing in the outskirts of Buenos Aires who rely on long commutes to work. However, these affordable fares, along with other subsidies for essential goods, have become a significant financial burden for the heavily indebted government amidst Argentina's severe financial crisis.
The Buenos Aires underground transit system, once a symbol of the city's opulent early 20th-century prosperity, has unfortunately deteriorated over the years, reflecting the broader economic challenges facing the country.
