Historic Fuel Increase in Costa Rica Will Take Effect this Week

This week the decree with the approved increases in the price of fuels was published in La Gaceta, with which now comes into force.In this way, the liter of super gasoline goes from ¢822 to ¢909 (difference of ¢87), the liter of regular goes up from ¢804 to ¢889 (difference of ¢85), and diesel from ¢724 to ¢ 845. The latter, with ¢121, is the highest increase recorded.This increase, requested by the Costa Rican Oil Refinery (Recope) on March 11^th, was approved by the Public Services Regulatory Authority (Aresep).

Another important variation is registered in the price of the LP gas cylinder of 25 pounds. It goes from ¢10,226 to ¢11,230, that is, there is a variation of ¢1,004.This is the second increase in less than a month, since the previous one occurred on March 2^nd.A month ago, super gasoline cost ¢765, regular ¢748, and diesel ¢671.

Effects of Russia and Ukraine

The justification for both Recope and Aresep is that the increase is due to the effect of the Russian invasion of Ukraine. The conflict has had consequences on the price of hydrocarbons throughout the world.However, representatives of the different business chambers have called in recent days for the rise in fuel prices to be contained.

The foregoing due to the impact it would generate on the costs of public transport and merchandise, which would end up affecting the final prices of the products. This would generate higher inflation and impoverishment of families.

However, neither Recope withdrew the increase request, nor Aresep stopped the approval process.At this time, a bill to mitigate the effects of fuel increases is being discussed in the Legislative Assembly.

Recently, the Costa Rican Union of Chambers and Associations of Private Enterprise asked to consider a reduction in the single tax on fuel, to minimize the impact.