Buenos Aires Transport Crisis: Bus Services Slashed Amid Fuel Price Surge and Subsidy Arrears

Public transport in Buenos Aires faces a severe crisis as bus companies slash services by up to 40% due to soaring global fuel costs and government subsidy arrears.

By: AXL Media

Published: Apr 8, 2026, 11:13 AM EDT

Source: Buenos Aires Times

Widespread Reductions in Fleet Circulation

Commuters in the capital and its surrounding suburbs have been met with significantly longer wait times and overextended queues at major transit hubs. According to Marcelo Pasciuto, director of the Chamber of Passenger Transport Business (CEAP), the drop in active vehicles varies by company but consistently ranges between 20% and 40%. With approximately two million people relying on these services for their daily commute, the reduction has effectively paralyzed key transport arteries during peak hours.

The Impact of the Middle East Conflict on Fuel

The primary driver of the service cuts is the skyrocketing cost of diesel. Luciano Fusaro, president of the Argentine Association of Transport Automotive Businesses (AAETA), pointed out that the war in Iran has sent global oil prices surging. In Argentina, this translated to a 21% jump in fuel prices during March alone. Domestic diesel prices have climbed from 1,700 pesos per liter in January to 2,100 pesos (approx. US$1.45) currently, creating an unsustainable overhead for private transport firms whose budgets were based on much lower projections.

Subsidy Delays and Austerity Pressure

The crisis is further exacerbated by a backlog of unpaid government subsidies. Industry sources indicate that some payments have been delayed since the last quarter of 2025. Under President Javier Milei’s austerity program, utility and transport subsidies have been drastically cut, causing household utility bills—of which transport is the largest component—to rise by nearly 600% since December 2023. While the Transport Secretariat announced late Tuesday that it would transfer outstanding funds within 24 hours, operators remain skeptical about long-term stability given the high-inflation environment.