Saturday 18 September 2021

Draft Bill Proposes 72% Reduction In Price of LPG; To End Monopoly

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(QCOSTARICA) Being a product of mass consumption in Costa Rica households, legislators of the Movimiento Libertatio (ML) party presented a draft bill that aims to substantially reduce the price of Liquified Petroleum Gas (LPG) and end the monopoly for its import and distribution.

Spearheaded by ML party leader, Otto Guevara, the draft bill would reduce the “impuesto unico” (single tax) on gas, reducing the cost to the consumer from the current ¢141.55 colones per litre to ¢94.30 colones.

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According to the Census 2011, it is estimated that LPG is used in 451,000 households across the country.

The Libertarians say, “the tax (on gas) is highly regressive and hits directly the pockets of consumers, which many of these are Costa Rican families trying to prepare meals more economically, considering the high prices of electricity.”

“RECOPE, since August 2011 does not refine a drop of oil, does not produce Liquefied Petroleum Gas and demonstrated that a monopoly has no incentive to be efficient in importing, storing, transporting and packaging LPG. For these reasons we present this bill, so that consumers benefit from a reduction in the final price”, said Guevara.

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