Q COSTARICA — Central America, a region heavily reliant on fuel imports, is feeling the effects of the Middle East crisis with gasoline prices rising to over US$4 per gallon (3.785 liters) after increases in recent weeks.
This has sparked consumer fears about the anticipated impact on the transportation and food sectors.
In Panama, El Salvador, Honduras, Guatemala, and the Dominican Republic, a gallon of gasoline sells for between US$4.09 and US$4.90, while in Nicaragua and Costa Rica it exceeds US$5, although both countries have special circumstances in place.
Authorities have attributed the price increase to market volatility stemming from the conflict in the Middle East.
Consumers rush to fill up their tanks
In Panama, prices are adjusted every two weeks, and starting Friday, March 20, gasoline is selling for a maximum of US$1.19 per liter or US$4.62 per gallon for 95-octane, US$4.32 per gallon for 91-octane, and diesel for US$4.76, with increases of between US$0.74 and US$1.18.
“We understand that this increase directly impacts Panamanian families, transportation, and the daily dynamics of the economy,” the Energy Secretariat said in a public statement.
Many drivers filled their tanks the day before to avoid the new prices, including a Panamanian taxi driver who commented that he drives without air conditioning to consume less gasoline and that if this trend continues, he will look for another job because fares cannot be increased without government authorization.
This anticipation is also evident in El Salvador, where drivers are filling up a day before the gasoline price changes. On March 17th, the price increased by 25 to 26 cents per gallon, reaching highs of between US$3.85 and US$4.09 per gallon.
In Guatemala, the price has risen by about US$1.30 in the last two weeks, settling at between US$4.60 and US$4.90 per gallon of regular gasoline.
Social media is rife with comments that gasoline is getting less mileage, and Guatemalan authorities are conducting operations to prevent price gouging at gas stations. Subsidies, Price Freezes, and Advance Purchases
In Honduras, where gasoline prices have risen between 11 and 15 cents and are selling for between $3.81 and $4.27 per gallon, the government will absorb 50% of the price increase for regular gasoline and diesel, costing the state approximately 50 million lempiras ($1.8 million) per week.
In Costa Rica, gasoline is selling for between US$5.07 and US$5.11 per gallon. The last price adjustment was made in February. Fuel prices in Costa Rica are adjusted on a monthly basis. See here the official fuel prices in Costa Rica.
In Nicaragua, the price has remained frozen since April 2022 at US$5.06 per gallon for premium gasoline, US$4.94 for regular gasoline, and US$4.47 for diesel, according to the Nicaraguan Energy Institute.