Fueling the crisis

The producers and distributors blame it on the weather being so cold; the government says it's lack of investment and speculation and repeat that, again, there's no energy crisis. But this is not enough. People are having power cuts, sometimes lasting days, because there's not enough natural gas and diesel to power the generators and because the generators are overwhelmed by the demand. Natural gas is being denied to drivers, or sold by small quotas, and now even the compressed natural gas (CNG) cylinders that many people use to heat their homes and cook are difficult to get, and fuel oil in the south of Santa Fe is rationed.

I don't have a car, I don't have to put fuel into any machine to harvest anything, and luckily I haven't had blackouts at home. I have natural gas delivered normally through the pipes, and I've used it almost continuously since last week to get some warmth. Yet I'm hearing complaints on the radio, from several parts of the city, and I'm wondering how much this luck (because this is plainly luck and nothing more) will last.

Everybody passes the blame on to someone else, yet everybody's right in a sense: each of the accused is guilty of part of the problem...

Rosario bus fee raised

I guess that's enough with Mendoza already... There are news over here too!

This is not exactly news, though it was unexpected. The municipality just raised the urban bus fee from 0.95 to 1.20 pesos; the 6-trip prepaid card rose from 5.40 (each trip for AR$0.90) to 6.90 (AR$1.15/trip); all in all it's over 25%, quite a brutal hack to one's pockets. The political cost is going to be high. The executive branch (mayor Miguel Lifschitz) asked the Socialist-dominated legislature of Rosario to grant it the power to raise the fee. The Deliberative Council complied at once, eager to shift the political cost to the mayor, who has kept a low profile and a high approval rate. Lifschitz conditioned the fee increase to the results of a study of the costs of public transportation, but it was obvious that the fee was going to go up regardless. The opposition was quick to point out that the delegation of legislative powers was done too fast, during the holiday season (everybody knows nobody pays attention to the news during the summer holidays!), and denounced a previous secret agreement between the mayor and the companies that own the bus line concessions (and that will participate in the re-designed public transportation scheme to be implemented a few months from now). Basic knowledge of realpolitik tells me this is probably true; the companies will not invest in a system that doesn't give them enough profit.

The root of the problem, however, is the combination of last year's huge salary raise for bus drivers (that was presented to the media as the resolution of a conflict between the drivers' union and the companies, but was rather clearly, except for the most naïve, a mis-en-scene to appease the drivers and to get the companies an argument to push for a fee increase) and the national parliament's preference for Buenos Aires City in the issue of subsidies to fuel for public transport — which is why bus tickets in Buenos Aires remain at around 80 cents while the big cities in the rest of the country (Córdoba, Mendoza, and now Rosario) have had to raise them to over AR$1.10, from previous values around 90 cents.

Buses in BA carry a lot of passengers from the impoverished metropolitan area, to be sure, but the cost of living in that area is considerably higher than that of the rest of the country (I'm told a cup of coffee can be around 4 pesos in BA — you can get a medium cup of coffee with milk plus two medialunas for less than 3 pesos in Rosario). Why is the bus fee kept artificially low in BA? BA has trains and a subway, and of course people there have many more cars and many more taxis available in proportion (BA has a taxi per 80 people — Rosario has about 1 per 350 people). Moreover, with a national government that constantly pressures private companies and interferes with the market to keep the prices of basic products depressed, what sense does it make to let public transportation become so expensive? An average worker in Rosario may now spend between 6 and 8% of his or her monthly salary just to get to and back from work.

I use the bus a lot (maybe 90 bus trips a month when I'm going to Japanese class); despite my willingness to exercise, I just can't go to work on foot or by bicycle; it's too far away and I can't possibly wake up even earlier than I do now. I can pay for the difference, but I shouldn't. My bike got out of repairs just yesterday and I think I'm going to start putting it to use...

Meanwhile, the transport officials of the municipality say the bus system is working fine and will be even better, the everyday bus users are complaining about the quality and frequency of the service, the taxi drivers want their own fee to be increased even more to compensate, and at least one person is attempting to block the fee increase by a judicial interdiction. The taxi owners are also complaining that they will have lots of work because the bus won't be advantageously cheap enough (what do you call a businessman who complains because his product has a large demand?).