The operations financial for Q2 billion for the “Emergency Support Law for Diesel and Gasoline Consumers”, which will provide a subsidy of Q8 for a gallon of diesel and Q5 for premium and regular gasoline, began to be carried out, so that it becomes effective in a period of 10 to 15 days.
The deputies of the Congress of the Republic approved the emergency program due to the increase in the prices of refined fuels in Guatemala, which are imported in their entirety, and, at the same time, They authorized the Ministry of Finance (Minfin) to carry out the budget readjustment.
The law approved on the night of Tuesday, April 14, indicates that the duration will be three months (90 days) and will be counted from the publication of the regulations, or until the budget availability for the emerging program is exhausted.
The subsidy of Q8 per gallon of diesel and Q5 for gasoline must be reflected in the final consumer and will have cross controls between the Superintendence of Tax Administration (SAT) and the Ministry of Energy and Mines (MEM).
The transfer of the benefit will be carried out through the distribution and marketing chain of diesel and gasoline importers that are registered with the General Directorate of Hydrocarbons (DGH), an entity attached to the MEM.
The law indicates that importers of petroleum products must reflect the decrease in the amount corresponding to temporary social support in the sales price at the terminal (warehouses in port), known as ex-rack, and in all invoices issued. In the marketing chain, the annotation of temporary social support must be recorded.
Government will redistribute funds to cover subsidy
The Congress of the Republic also approved the budget space and financing of the emerging program for Q808 million.
According to the approved law, the budget space for the subsidy will come from the Ministry of Communications, with Q550 million; from the Ministry of Defense, with Q200 million, and from the Ministry of Agriculture, with Q58 million.
The Ministry of Finance (Minfin) must make the analytical distribution of the expansion of income and expenses. The assigned resources are temporary in nature and will not constitute a permanent expense, indicates the law.
In addition, the Legislature approved that the Minfin carry out budget rearrangements for Q1,192 million to complete the total authorized amountthat is, Q2 billion.
The Ministry of Finance (Minfin) must make the analytical distribution of the expansion of income and expenses. The allocated resources are temporary in nature and will not constitute a permanent expense.
All these financial operations will be charged to the annual budget of the Ministry of Energy and Mines (MEM) and will have the following days to locate and structure the financing.
State support for diesel allows prices to be contained
Héctor Fajardo, director of the Chamber of Central American Transporters (Catransca), declared that support had previously been proposed, since the adjustments to diesel had a strong and sudden impact, as the gallon increases by Q19.
In his opinion, a subsidy is not a general solution for transport, but it will help to cushion the current price situation.
This subsidy will help households and the population in general, because it reduces and mitigates the negative effect of the general increase in prices.
In any case, the approval of temporary support is perceived positively.
Transportation rates will be adjusted based on technical basis
Regarding adjustments to rates for transportation services, Fajardo stated that the changes made will be on a technical basis.
He exemplified that the increase of Q19 per gallon of diesel, and now having a subsidy of Q8, will be handled accordingly.
He clarified that this is an adjustment and not an increase in rates, that will not remain immovablebut it is temporary while this price situation lasts.
“If this were to be regularized at the prices that were at the end of February, obviously any adjustment would disappear. Everything will be carried out on technical bases and there will be no perceived exploitation of the sector with the clients or users of the transport services, but rather the aim is to guarantee the provision of the services, which is the interest,” Fajardo remarked.