Bus Numbers Dwindle Amid Rising Fuel Costs and Unpaid Subsidies

Public transport buses in the capital and its densely populated outskirts are operating at diminished frequencies, a consequence of escalating fuel prices associated with the conflict in the Middle East and postponements in subsidy disbursements, industry sources reported on Tuesday. The decline in activity has resulted in extensive lines of passengers forming at the primary transport hubs linking the capital to its neighboring regions. Approximately two million individuals traverse between the two regions on a daily basis. According to Marcelo Pasciuto certain companies have reduced their bus operations by 20 to 30 percent, with some experiencing reductions as significant as 40 percent, as he noted in an interview with Radio Futurock. Operators caution that the decline may intensify in the forthcoming days.

The rise in oil prices, instigated by the ongoing conflict in the Middle East, has resulted in a consequential impact in Argentina, where fuel prices experienced an average increase of nearly 21 percent in March, as reported. “This is a consequence of the war in Iran and surge in oil prices, which has had a significant impact on transport companies, particularly from the second half of March,” Luciano Fusaro, president of the Asociación Argentina de Empresarios del Transporte Automotor, stated in an interview with Radio Con Vos. This follows delays in subsidy payments that have persisted since the last four months of 2025, as reported by industry sources. Fusaro indicated that the expenses employed in the computation of subsidies have increased. In January, diesel was priced at 1,700 pesos per litre, “but today it stands at 2,100 pesos,” he added.

Repeated increases in bus fares, which saw a 16 percent rise in March alone, have correspondingly led to a decline in passenger numbers. This month, there was a 12 percent decline in passenger numbers compared to the same period last year, according to Fusaro. Official data indicates that transport constitutes the most significant portion of household utility expenses, which have surged by almost 600 percent since President Javier Milei assumed office in December 2023, coinciding with subsidy reductions as part of his austerity measures. The bus network in the capital and its surrounding areas comprises approximately 17,000 vehicles.

Argentina’s Transport Secretariat announced late Tuesday that it would disburse outstanding subsidies to private bus companies within the next 24 hours. “The national subsidies will be disbursed to the companies tomorrow, coinciding with the fourth working day of the month. “It is up to them” to restore normal services and withdraw any strike threat,” stated a spokesperson for the department. “We are doing what needs to be done: paying them and meeting with them,” as stated.