Gas Prices Rise Friday: The Gasoline Subsidy will Take Effect in 15 Days
The National Government announced price caps for gasoline in public and freight transport, which will represent $15 million per month for the State. Members of the transport sector attended the meeting. There was a Consensus between government and transport operators. The government will reimburse costs to carriers.
The National Energy Secretariat confirmed the new regular prices for gasoline and diesel, which show a new increase. It was reported that 95-octane gasoline will increase by 11 cents per liter and 91-octane gasoline by 10 cents per liter. Diesel was reported to increase by 15 cents per liter. Wednesday, a meeting between authorities of the National Government and transport unions evaluated the implementation of the new gasoline subsidy that the State will assume to mitigate the impact of the high costs that are hitting the country amid the international oil crisis. Following a meeting that lasted just over an hour at the Presidential Palace, the conclusion was that the subsidy would begin implementation within the next 15 days. Lawmakers support the government measure on a temporary fuel subsidy. This timeframe aims to establish a database, through a digital platform, that will allow for the registration of freight carriers, as well as the public sector and artisanal fishing, who will benefit from the price caps at various gas stations.
“It must be understood that we are talking about almost 75,000 operating certificates that have to be structured and taken to a joint database between the AIG, the Transit Authority and what we supply in the transport sector,” said Dorina Pérez, legal advisor of the National Chamber of Transport (Canatra). Pérez emphasized that the subsidy “is not an exclusive privilege for the transportation sector.” Pérez stressed that it is a government mechanism to prevent fare increases for users, and to curb rising food costs. For his part, Jorge Dimas Collado, president of Canatra, stressed that the government’s commitment also includes recognizing the additional expenses incurred by transporters during these 15 days while working on the database.
“There will be no fare increase, because we have reached an agreement with the central government, so that we have a 15-day deadline, it could be sooner, to be able to implement, to have the subsidy for the transporters,” he said. The government-announced subsidy sets the price of 91-octane gasoline at $3.33 per gallon and diesel at $3.41 per gallon. This benefit is temporary and does not include 95-octane gasoline. The Minister of Government, Dinoska Montalvo was accompanied by the Minister of Economy and Finance, Felipe Chapman, and the Director of the Transit and Land Transport Authority (ATTT), Nicolás Brea, who all attended the meeting.
