Yesterday, La Autoridad Reguladora de los Servicios Públicos (Aresep) proposed eliminating the subsidies that diesel, jetfuel, and bunker fuel (shipping) receive.  This is unrelated to the taxes on fuel.

Because of the subsidy, regular and super gasoline, LPG gas and asphalt cost more.

ARESEP compared the subsidies with international fuel prices from 25/9/20006 to October 4th. The investigation found that  RECOPE undervalued the real price of diesel at the distribution plant in ¢33, while bunker was ¢26 less and jet fuel in ¢35.49.
Prices in other products compensates for the losses perceived in these fuels, for example, regular gas ¢46 more per liter, super ¢83, gas ¢25 and asphalt ¢150.

According to Carolina Mora, ARESEP spokeswoman, since the 1980s the government has subsidized diesel and bunker to reduce the cost of transporting people, the production of goods and agricultural products and to help families.

This has caused a distortion in prices and ARESEP has proposed eliminating the subsidy en all products, except super gasoline.

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Super gasolina would continue to be overvalued by ¢24, since eliminating this subsidy would affect RECOPE finances.

In the gas stations diesel would cost ¢33 more, while Super would cost ¢59 less and regular ¢46 less. ARESEP called for a public audience on December 7th. Then technicians would make a proposal that ARESEP would approve or reject.

Maritza Hernández, President of the National Transporters Union said that with this proposal public transportation costs would rise and this would affect the poor.

Shirley Saborío, Executive Director of the Union of Associations, agreed that the cost of transporting products would rise, which would affect consumers and businesses.