Sunday, 24 May 2020

Fuel prices will return to the amounts of March 4 to subsidize workers affected by crisis

Prices will be artificially kept to as at March 4 during the national emergency

With 49 votes in favor and one against, legislators on Monday approved a bill that will take advantage of the reduction in fuel prices to finance subsidies for workers affected by the coronavirus crisis.

The plan will introduce an additional source of financing to nurture the “Proteger” program, which in turn is legalized with this same bill.

The Proteger subsidy plan aims to give ¢125,000 colones per month to workers who lost their jobs or had their contracts suspended due to the crisis, as well as ¢62,500 to those who had their working hours reduced. For now, in its first stage, the plan will be financed through rearrangements of items in the Government Budget and resources from a loan from the Latin American Development Bank (CAF).

- paying the bills -

Faced with the fall in international oil prices due to the covid-19, the project will prevent local prices of super gasoline, gasoline plus and diesel from falling further.

In fact, as soon as it comes into force, the law will return fuel prices to the amounts they were on March 4, somewhat higher than today. This was confirmed by the Minister of Planning, Pilar Garrido.

At that time, super gasoline was ¢606 per liter; regular or plus, ¢583 and diesel, ¢498.

Today, prices are lower: ¢580, ¢555 and ¢464, respectively, and it is possible that the Costa Rican Oil Refinery (Recope) will request a new reduction this week in its regular monthly pricing schedule.

The new law, which goes into force once it is signed by President Carlos Alvarado and published in La Gaceta, will allow the difference between the prices of March 4 and the prices that would have to apply if adjustments according to the reduction in the cost of crude oil to be directed to the subsidy fund.

- paying the bills -

Recope will pass the price differential to the Ministry of Finance.

The differential will cease to exist when the national emergency ends or when fuel prices exceed those of March 4.

If at the end of the emergency due to the new coronavirus there is any amount of money left over from this program, the Treasury must use it to pay public debt.

The price of a barrel of  WTI Crude has dropped to a low of US$23.63 (April 73), less than half of what it cost on February 18: US$52.02.

The worldwide crisis of the covid-19 caused an abrupt drop since the beginning of the year. In the first days of January, a WTI barrel cost more than US$63.27.

This caused that, on March 4 and 28, two consecutive reductions in local fuel prices came into effect.

Rico
Ricohttp://www.theqmedia.com
"Rico" is the crazy mind behind the Q media websites, a series of online magazines where everything is Q! In these times of new normal, stay at home. Stay safe. Stay healthy.

Related Articles

Decree reduces price of jet fuel in order to encourage tourism

The price in Costa Rica of jet fuel will be reduced...

Aresep approves lower fuel prices, but there will be no reduction in the price at the pumps

The Autoridad Reguladora de los Servicios Públicos (Aaresep) - Regulatory Authority...

MOST READ

Tourist cars will have automatic extension until July 17

All temporary import certificates of vehicles for the tourist category are automatically extended until Friday, July 17, 2020, due to the national emergency due...

Coronavirus in Costa Rica: Confirmed cases now 897, 4 more truckers treated for covid-19

(QCOSTARICA) The Ministry of Health reported 15 new cases of covid-19 in the country in the last 24 hours, increase the total infected since...

Court confirms sanction against Scotiabank in Costa Rica for breaching anti-money laundering rule

(QCOSTARICA) The Administrative Court (Tribunal Contencioso Administrativo) upheld the sanction imposed on Scotiabank, by the General Superintendence of Financial Entities (Sugef), for failing to...

More than 61 countries around the world set their sights on Costa Rica for the successful return of national soccer

(QCOSTARICA) More than 61 countries around the world set their sights on Costa Rica after the successful return of professional first division soccer (fútbol...

UN: Violence, COVID-19 Create Displacement Crisis in Central America

The U.N. refugee agency UNHCR reports worsening violence and hardship caused by COVID-19 are pushing people in Central America to flee their homes in...

The perfect way NOT to use a mask

(QCOSTARICA) A large group of mayors, unionists and municipal workers gathered outside the Legislative Assembly today (Tuesday), in downtown San Jose, demanding legislators approve...

Let's Keep This Going!

To be updated with all the latest news and information about Costa Rica and Latin America.