Argentina Faces Energy Crisis as Provincial Dispute Escalates

President Milei condemns Chubut's threat to cut energy supplies over funding dispute, highlighting national unity and constitutional concerns.

Argentina's President Javier Milei and Chubut Governor Ignacio Torres are embroiled in a dispute over federal tax revenue disbursements, leading to threats of cutting off energy supplies.
The conflict began when the federal government withheld approximately $15 million in funds from Chubut, prompting the governor to threaten to halt oil and gas supplies.
Milei's government has implemented shock economic policies since December, including slashing the currency's value and reducing aid to provincial governments, exacerbating tensions with provincial leaders.
Buenos Aires Governor Axel Kicillof announced plans to appeal to the Supreme Court after Milei's government cut fiscal funds for the province, further intensifying the dispute.
The ongoing conflict poses a challenge to Milei's ability to garner political support for reforms, as his Freedom Advances party lacks a majority in Congress.