Loosen The Purse Strings
As Gasoline Prices Shoot
Through The Roof
Another Round Of
Gasoline Prices
Approved, Diesel To Cost
More Than Super
In a little more than a
week - Tuesday 15 July -
the country will set
another record for high
gasoline prices, this
time diesel fuel will
cost more than gasoline,
as the Autoridad
Reguladora de los
Servicios Públicos (Aresep),
announced the latest
gasoline price hike
approval.
The decision was made
last Monday, but the
announcement wasn't made
until Friday and all
that is required now is
to be published in the
official government
publication, La Gaceta,
which is due on July 15,
when the price of a
litre of super gasoline
will be a record ¢716
colones (up from the
current ¢656), regular
will be ¢704 (up from
¢644) and diesel ¢710
(up from ¢622).
Recope has asked for an
increase of ¢58 for
gasoline and ¢86 for
diesel, however, the
Aresep decided to add ¢2
colones to the request.
The increase also means
that for the first time
in the country's history
diesel fuel costs more
than gasoline.
As to diesel it is still
not definite that the
price increase will
actually make it to the
pump.
The government announced
at the time Recope made
the request that it
would subsidize the
increase by transferring
¢10 billion colones from
the government treasury
to the state refinery.
The transfer requires
the approval of the
Legislative Assembly,
which as of Friday had
not yet given its
approval.
Regulador General,
Fernando Herrero, said
that he had to approve
the price hike on diesel
due to the lack of
approval by legislators,
but would roll back the
increase if and when the
legislative approval is
given.
The decision by the
Aresep has angered bus
operatos and taxi
drivers who by way of
their union have called
on a strike action on
Tuesday unless the
government offers them a
solution other than
higher fares.
But, wait, don't get too
used to these prices, as
the government is
seeking an increase in
the tax on gasoline that
would send the cost of
gasoline even higher.
If the tax increase were
approved today, the cost
of a litre of super
gasoline to ¢801 colones
per litre. The
government is seeking to
increase the tax on
super gasoline from
¢173.25 to ¢325.5 and
regular ¢165.75 to ¢306.
The increase is to
offset the subsidy on
that would keep diesel
fuel prices low.
However, the bill is
facing strong
opposition.
The high fuel prices are
all being blamed on the
increase in the cost of
a barrel of crude oil
that reached a record of
us$144.
|
Product |
Current Price |
Price on July 15 |
Price if Tax
Approved |
|
Super Gasoline |
¢656 |
¢716 |
¢868.25
|
|
Regular Gasoline |
¢644 |
¢704 |
¢844.25 |
|
Diesel |
¢622 |
¢710 |
- - |
|
