A report from the UBA's Interdisciplinary Institute of Political Economy (IIEP) shows that bus services in the AMBA dropped up to 40% on interjurisdictional lines due to fuel price surges from the war in Iran and outdated subsidies. The operational fleet is 12% smaller than in 2019. If costs are passed to users, fares could rise another 16%.
The Report on Fares and Subsidies No. 37 from the IIEP-UBA's Observatory of Fares and Subsidies confirmed that bus services in the Greater Buenos Aires Area (AMBA) declined by 30% on average, reaching 40% on interjurisdictional lines crossing the General Paz and 5% on those exclusive to the Autonomous City of Buenos Aires (CABA).
The study, by Alejandro Einstoss and Julián Rojo, attributes the contraction to diesel prices exceeding $2,100 per liter, driven by the war in Iran, while official subsidies are based on $1,744. This creates a $17.5 billion monthly fiscal shortfall, split as $7.595 billion for the Nation, $8.155 billion for Buenos Aires Province, and $1.75 billion for CABA.
The current fleet is 2,359 units smaller than in 2019. The authors warned that without additional subsidies, companies would pass on costs, leading to a 16% fare hike on top of planned increases. Current fares include $700 to cross into CABA, $715 in CABA, and $871 in Greater Buenos Aires.
Since 2023, AMBA transport subsidies have fallen 34% in real terms, despite nominal increases of 1,200% to 1,668%.
