Governors' encounter with Franco is delayed; fuel tax trainees persist
CÓRDOBA- THE GOVERNORS WANT TO MEET UP WITH GUILLEMERO FRANCOS DESPITE JAVIER MILEI'S REFUSAL
Ah, the drama is thick in Argentina, folks! The governors are hoppin' mad at Javier Milei, and they're ready to give Guillermo Francos a piece of their minds - or so they thought!
The goal was to finally sit down with the infamous Milei during the meeting they had with 23 governors at the Council of Federal Investments (CFI). But alas, Francos called off the meeting due to some scheduling issues they said, not wanting to admit the real reason - Milei didn't want to play ball.
But, don't worry, the governors are no strangers to a good old-fashioned showdown. They vowed to push forward, especially when it comes to the nation complying with the application of the fuel tax to improve those crumbling roads. After all, they say the roads are in such poor condition due to reduced national investment!
The group that was set to attend the meeting was quite a mix. Names like Alfredo Cornejo (Mendoza), Rogelio Frigerio (Entre Ríos), Claudio Vidal (Santa Cruz), Raúl Jalil (Catamarca), Ignacio Torres (Chubut) and none other than Axel Kicillof were on the list.
But, let's face it, the governors ain't gonna get concrete answers from Francos. He listens, sure, but when it comes to managing resources, he's got his limits. That's why the governors are complaining in private that they need "decision-makers" if they're going to get anything done and not just be stuck in endless conversations.
The price of fuels may be on the rise, but in reality, there was only a 5.8% increase in the tax the National State charges users for each liter of fuel they load. It's the same users, by the way, who pay the tax and travel on those poor, neglected roads.
June 5, 2025 - The provinces are adamant that the public works the Nation promised to finance is almost at a standstill, and it's "crucial" to get things moving again. They're talkin' 'bout maintenance, people - and let's admit it, without it, those roads are gonna get a whole lot worse!
Two laws govern the distribution of revenue collected by this tax. 10.4% of the revenue goes to the National Treasury, an equal percentage to the provinces. The rest is divided between the National Housing Fund, the Single Social Security System, the Hydric Infrastructure Trust Fund, the Transport Infrastructure Trust Fund, and the Public Transport Compensation.
Just a few days ago, senators from Union for Patria, led by the Salta senator Sergio Leavy, introduced a project for a new distribution scheme for both the tax on Liquid Fuels and Carbon Dioxide. Last year, the total amount to be transferred exceeded $618.964 million, but only a third was sent to Vialidad, the road maintenance agency, around $107.013 million.
Private analysts agree that there was a political decision to prioritize inflation containment over the recomposition of this tax, which caused a delay in the tax, representing half of the subsidies to the energy sector. As a result, $2.4 billion was not collected last year, and $600 million was lost in the first quarter of 2025.
Governors like Pablo Olivares from Santa Fe have called out President Milei for collecting the tax on liquid fuels yet failing to carry out the necessary works. The Buenos Aires Minister of Infrastructure, Gabriel Katopodis, has been sounding the alarm for months about the same issue.
Now, here's the kicker - the Casa Rosada needs to "align again" with the governors to have the necessary number to veto the increase in pensions, as they expect the Senate to pass the norm.
All in all, it seems the governors are not satisfied with the current state of affairs, and they're fighting tooth and nail to get the resources they need for public works. It's a complicated situation, but hey, if there's one thing we know about in Argentina, it's politics and drama!
By Gabriela Origlia, Guillermo Francos, Rogelio Frigerio, Claudio Vidal
According to
- The gubernatorial coalition is advocating for a meeting with Guillermo Francos, frustrated with Javier Milei's refusal, as they aim to address policy-and-legislation concerning the energy sector, particularly the application of fuel tax to improve the nation's infrastructure and general-news.
- Despite Francos' cancellation of the meeting due to scheduling issues, the governors are determined to push for decision-makers to ensure compliance with the fuel tax, citing the deplorable state of the roads as a result of reduced national investment and finance.
- The gubernatorial group, comprising members like Alfredo Cornejo, Raúl Jalil, and Claudio Vidal, is seeking legal changes to the distribution of revenue collected by the fuel tax, with the intention of increasing the funds allocated for public works and infrastructure within the industry.
