Nicaragua Concerned over High Oil Prices
The increasingly spiralling international oil prices is worrying Nicaraguan economists, who are afraid of a stronger impact than the one last year, when crude oil was quoted at 70 dollars a barrel.

Oil expert Roger Cerda said companies will see their utilities and sales reduced, and the working sector will lose even more acquisitive power.

Still not touching the 70-dollar price record, the crisis began to affect Nicaraguans three weeks ago, with a gradual increase in the prices of gas and diesel fuel.

Mario Arana, president of the Nicaraguan Central Bank, told local press prices would increase 60 million dollars this year to possibly reach 600 million dollars.

Economist Sergio Santamaria explained that 10 million barrels are consumed in Nicaragua every year, so the total price would then reach 650 million dollars," he stated.

Other sources mentioned by La Prensa fixed the amount Nicaragua should pay to buy oil at 717 million dollars, which represents more than twice the amount destined for such a goal in 2003.

Nicaragua uses a product called bunker, an oil by-product, to produce 70 percent of the electric power it consumes.