Costa Rica regulator changes methodology for calculating fuel prices

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October 22^nd, 2015 (ICR News) Costa Rica’s Regulatory Authority for Public Services (ARESEP) has changed the methodology by which the Costa Rican Oil Refinery (RECOPE) must calculate the price of gasoline, diesel, and other petroleum-derived products that it sells.

Despite its name, RECOPE does not currently refine crude oil into gasoline, diesel, and other products, rather it imports the products ready-made.

Until now, RECOPE calculated its retail prices based on reference prices on the international market.  The state-owned company, however typically paid less than the international reference prices, and profited from the difference.

Under the new methodology, prices must be set based on the actual prices paid by RECOPE at the time of purchase.

In addition, the regulator will now force RECOPE to use a dollar exchange rate averaged over 15 days rather than the exchange rate on the date of purchase.

Regulators will also conduct an annual financial audit of RECOPE to review its operating costs and overhead.

Costa Rica has long held the distinction of having the highest fuel prices in Central America.