Treasury Minister for the Buenos Aires Néstor Grindetti announced this morning that the city’s 2013 budget will not include subsidies for the capital’s subway system (“the Subte”).

The news comes just ten days after a similar announcement from the national government stating that it will not dedicate funds to Subte subsidies in its 2013 budget either.

Grindetti explained that the city is not bound by any formal obligation to provide funding for the system. Furthermore, “we don’t have any motivation for incorporating that budget item,” he continued.

To questions regarding the possibility of an increase in fare, Grindetti responded, “the federal government will have to decide that.” Authority over the Subte has been in question—and controversy—since January when the state and city began planning a transfer of control. Conflict over each party’s ability to fund the system has significantly hindered management ever since.

During the initial transfer process in January, the federal government decided to retract funding that had been supporting 50% of the Subte’s operating costs, a move that saved the government $60m monthly. Upon assuming management of the system, Buenos Aires chose to raise the $1.10 fare by 127% to its current price, $2.50.

Without Buenos Aires’ supplementary $30m per month, the transportation company Metrovías will have to find another way to finance the subterranean system. Speculations on price increases suggest a $3.90 fare, though those calculations do not take into account inflation nor wage hikes. Mayor Mauricio Macri has been quoted last month as claiming that a trip on the Subte should cost $5.50.

Any changes in fare are likely to occur at the beginning of the year, when the new budget takes affect.

On a press conference this morning, minister of the interior and transportation Florencio Randazzo announced a series of changes that will be introduced to the use of SUBE, the card used to pay for subte, bus, and train fares in Buenos Aires.

Randazzo explained that from today onwards, once the SUBE card runs out of credit, $7.50 will be automatically credited. This amount will be then discounted when the user tops up their card’s credit. He reiterated that the use of the SUBE card is still necessary to receive subsidised fares on buses. For those who choose to pay with coins, the minimum bus fare is $2, whilst the SUBE subsidised fare remains at $1.10.

The minister also announced that the card can be purchased online, on the SUBE website. It has a cost of $15, plus a $10 postage fee. According to the information on the website, the card is delivered within 10 working days. Foreigners can obtain their SUBE card by showing their passport and completing the relevant forms at any authorised distribution centre.

Taxi fares will go up 26 percent starting tomorrow, increasing from a base price of $5.80 to $7.30. Additionally, the distance fare, which is calculated every 200 meters, will increase from $.58 to $.73. These changes will apply to taxi rides between 6am and 10pm.

At night, between 10pm and 6am, the fares will be higher. The base price will go from $6.90 to $8.70 and the distance rate will change from $.69 to $.87.

The increase is the tenth implemented since 2003. Since then, the price of taxis has gone up 421%, or 521% if one takes into consideration the introduction of the night fare put in place last February.

The city government approved the rise in fares after a number of taxi unions and organizations requested the measure as a way to keep up with increasing cost of living expenses and vehicle maintenance due to inflation.

Beginning Thursday, tolls fares will increase 30 percent on the city highways. Motorists who pay electronically with Aupass, however, will receive a 15 percent discount. Currently, this discount is only 10 percent.

If the fare machine is not working, the passengers will travel free.

According to Resolution 811 published yesterday in the official bulletin of the National Commission of the Regulation of Transportation, anyone travelling by city bus, train or subway will not be charged if the SUBE machine is not functioning.

The measure was taken after city residents complained about the inconvenience of waiting for buses only to find that they couldn’t get on them because they didn’t have coins.