No Gasoline Hike Thanks To Sala IV Appeal
Thanks to an appeal by a man identified only by his last name, Segura, the latest request by the Refinadora Costarricense de Petróleo (Recope) and approved last week by the Autoridad Reguladora de los Servicios Públicos (Aresep), to the Sala Constitucional or Sala IV (constitutional court), has been set aside.

Segura alleges that as a citizen he is defenseless against the automatic formula used by Recope to calculate gasoline prices, fluctuating based on the rise and fall of the price of crude oil on international markets.

The Sala IV said it found merit in the Segura appeal and thus stays the latest round of gasoline price hikes that would have seen the price of super gasoline jump ¢16 colones and ¢15 colones for diesel, at the pumps this week, which approval was given last week.

The decision is quite significant, not only does it stave off this week's price hike, but it also forces the Aresp, in the future, to hold public hearing on all requests for price changes.

León Desanti, president of Recope, warns that this will provoke a shortage of gasoline.

"We have to go the way of a public audience the normal process of which lasts six months, Recope would then be stalled, causing a shortage in supply in the country", explained Desanti, adding that Costa Rica does not have control over international prices and the devaluation of the colón with respect to the dollar.

Although the details of the court decision were not published, Desanti considers that the decision of the judges have a bad interpretation of the public audience process.

Desanti added that the process of a public audience will mean an economic impact for consumers, as they will also have to wait months on end for any reductions in prices, as a public audience would be requires for such as well.

For the time being, Recope says its lawyers will be studying the court decision and ask for clarification from the judges.

For their part, Aresep said it would wait for the details of the decision before making a statement on the matter.


Editor's Note: Perhaps Recope can take lessons from the powers of be at ICE on how to pressure the government and Aresep.