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Gas Price Drop
Possible In Two Months
Gas Price Drop
Possible In Two Months
Maybe it's just our imagination, but it
appears that announced gasoline price hikes
take effect quickly, while reductions take
forever. That is the case of the latest
proposal to reduce gasoline prices announced
by the Autoridad Reguladora de los Servicios
Públicos (Aresep) last Friday afternoon.
On Friday morning the latest gasoline price
hike took effect, a price hike that had been
approved at the end of February and at the
pumps in less than a month.
However, the proposal to give back ¢79
billion colones to consumers of gasoline
products, which translates into a decrease
of ¢35 colones for a litre of super, ¢38 for
regular and ¢59 for diesel, will not take
effect for at least two months, according to
the Aresep.
You see, before the price drop can take
effect, the Aresep has to hold a public
hearing, to take in the opinion of the
consumers on the price drop, the render a
decision and finally publish the notice in
the official government publication, La
Gaceta.
We are sure that consumers will not oppose
the price drop. However, the public hearings
are open to any one and all, including the
Refinadora Costarricense de Petróleo (Recope)
- state refinery - which, no doubt, is
expected to argue that the drop will
negatively affect its financial position.
The price drop was not, as is usual, a
request by Recope, but rather a decision by
the Aresep based on figures it says it has
analyzed.
José León Desanti, president of Recope, said
yesterday he has no idea where the Aresep
got the figures and how it came up with the
reduction number and that the giving back of
the billion of colones proposed compromises
the financial stability of the refinery, as
the money is destined for investments and
maintaining reserves, guaranteeing the
country a continued flow of gasoline.
The Aresep is expected to announce this week
the date for the public hearings, which will
be available also by video conferencing all
over the country.
Aresep officials say the reduction is based
on the completion of the annual study of
Recope's finances. The public regulator also
said it will from now on conduct a financial
analysis of Recope every six months instead
of once a year.
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