by Rod Hughes

Like most Western nations including the United States, Costa Rica is wrestling with the effects of high petroleum prices and is divided on how to keep them from impacting the economy negatively. The Arias administration thought the government could best improve the nation’s balance of trade while controling inflation by taking the tax off diesel and adding it to gasoline sales. But that plan is now meeting a chorus of protest.

The latest to oppose the idea is a flipflop by the Citizen Action Party (PAC) bloc in the Legislative Assembly which initially thought it might be a good idea. But now they have backed away from the idea after having a look at the way the bill was drafted. PAC now plans to use its usual tactic of drowning the measure in an avalance of amendments. Even new PAC defector Andrea Moirales, now an independent and an opponent of using such blocking tactics, says she has her doubts that this is the way to confront the energy crisis.

Like most countries, Costa Rican stores receive their products by truck and the idea of reducing the price of diesel is to help retailers refrain from hiking the prices of their merchandise. Also, adding to the price of gasoline would stop the increasing use of that fuel, consumption of which has risen this year despite high prices at the pump. Bus transport, a big factor in this country, would also be effected and keeping the price low to passengers would encourage many to leave their cars at home and ride to work on public transport. One such government plan is now in effect, but that one does not need Legislative Assembly approval.

One sticking point is that the bill would increase the price of regular and premium gasoline for cars but leave jet fuel and bunker alone. But PAC deputy Ronald Solís groused, “Why should Tico motorists subsidize the big airlines?” “Now (that we see the bill) we realize that things are not what we hoped,” he explained to the daily La Nacion.

Despite a special plea by Minister of the Presidency Rodrigo Arias to speed up passage of the energy bill, it appears it is an orphan lacking support among the opposition parties. One National Liberation party legislator told La Nacion that the administration’s lawmakers would call the chiefs of the various blocs together to see if a compromise can be hammered out.