Government Halts Latest
Gas Hike, Details
Emergency Plan To Reduce
National Fuel
Consumption
Due to the rising cost
of gasoline in the
country, the latest
round of increase taking
place last Tuesday, the
government of Oscar
Arias has stepped in
with measures to halt
the price increases and
reduce national
consumption.
Rodrigo Arias, ministro
de la Presidencia and
brother of president
Oscar, announced the
elimination of taxes on
diesel fuel and halted
the planned hike of ¢85
colones per litre on
diesel fuel that would
have been made by the
Refinadora Costarricense
de Petróleo (Recope) to
the regulating body
today.
The cost of eliminating
the increase on diesel
fuel will be ¢10 billion
colones, the amount that
will be paid by the
government to Recope (a
state agency) so that it
will not suffer a loss.
Minister Arias said that
the money will come from
the budget that is
before the Comisión de
Asuntos Hacendarios de
la Asamblea Legislativa.
The move, according to
minister Arias, to
soften the blow to the
poorest, who are being
hit hardest by the
continuing increases.
Arias added that the
decision to affect only
diesel fuel was due to
the fact that 60% of all
vehicles in the country
run on diesel.
As part of the
government's plan, Arias
said that the octane of
regular gasoline will be
increased to 92 from 88,
allowing consumers to
reduce their consumption
of regular gasoline, and
plans to reactivate the
Heredia train, both for
passenger travel and
cargo.
The minister said in is
announcement that the
government will put
aside ¢2 billion colones
for the Instituto
Costarricense de
Ferrocarriles (Incofer)
- railway - to get the
Heredia trains moving as
fast as possible. In
addition, cargo train
service will be revived
for Cartago-San José,
San José-Caldera and San
José-Limón.
Karla González, ministra
de Obras Públicas y
Transportes, said that
the Heredia train will
take from 5 to 6 months
to get rolling and to
get the cargo trains
moving a loan of us$5
million dollars has to
be secured.
González added that the
movement of cargo
represents 60% of the
fuel consumption in the
country.
As part of the plan to
reduce fuel consumption,
minister González said
that the restrictions on
vehicular circulation in
the downtown core will
be extended to from 6am
to 9am and 4pm to 6pm
during weekdays,
depending on the last
digit of the vehicle's
license plate. The
current restrictions are
from 7am to 8:30am and
from 4pm to 5:30pm.
The current system
license plates ending 1
& 2 being restricted
from the downtown core
on Mondays, 3 & 4 on
Tuesdays, 5 & 6 on
Wednesdays; 7 & 8 on
Thursdays and 9 & 0 on
Fridays, will continue
according to González.
Minister González added
that the restrictions
will now also include
the circunvalación (ring
road around San José) to
eliminate the number of
vehicles during rush
hours. The restriction
on the circunvalación
will begin on Monday.
The transport minister
also said that there
will be a major
"redesign" of the roads
in the capital, whose
restructuring will take
place in September and
October. The minister
added that there will be
major changes in San
José in August as well,
though she did not
explain what the changes
would be.
For his part, the
Ministro de Ambiente
(Environment minister) -
Minae, Roberto Dobles,
announced a reduction on
import tax on vehicles
with hybrid motors and
high technology, as the
country is in need to
modernize its vehicles.
Dobles said that the
government will soon be
issuing an Executive
Order (decrees) to limit
the importation of used
vehicles.
According to Dobles, all
public institutions are
now under obligation to
reduce energy
consumption.
Minister Arias also
announced that the
government will be
presenting initiatives
to give incentive for
people to work at home
more, as technology like
the internet permits
people to work at home
and no need to go to the
office.
One last item that will
need more study,
according to minister
Arias, is the
introduction of daylight
savings time.
Minister Arias was clear
in his comments at the
press conference that
the items detailed are
only the first steps in
what he called a
national emergency in
the face of rising fuel
prices. |
