Recope Proposes
Bi-Weekly Increases in
Gasoline Prices
To balance itself out,
the Refinadora
Costarricense de
Petróleo (Recope)
proposed yesterday an
adjustment in gasoline
prices every two weeks
and not the last Friday
of each month, as
proposed by the
Autoridad Reguladora de
los Servicios Públicos (Aresep),
the government
regulatory body.
Recope presented the
plan to the public
hearings being held by
the Aresep to adjust
gasoline prices after
the Sala IV
(Constitutional Court)
voided automatic
adjustments in its
decision of May 8.
Recope, up to the Sala
IV decision, had the
power to automatically
adjust - up or down -
gasoline prices at the
pump based on the
movement of the price of
crude oil on world
markets.
A "recurso amparo" -
appeal - presented
before the
Constitutional Court put
an end to the automatic
increases and forced the
process back to public
hearings.
Since the Sala IV
decision there have been
no automatic price
increases, leaving the
state refinery with
having to scramble for
cash and reducing
reserves as it continues
to buy at higher prices
and selling gasoline at
a loss.
The Asociación
Costarricense de
Expendedores considers
the Recope proposal
unconstitutional as it
would give the state
refinery the power to
set its own prices at
will, rather than hold
public hearings.
The Aresep has 30 days
to render a decision on
the proposal. |
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