The Government reported that it is making progress in the implementation of the fuel subsidy contemplated in Decree 11-2026, Emergency Support Law for Diesel and Gasoline Consumers, measure that was approved in Congress to mitigate the impact of the international rise in prices, which has been affecting the Guatemalan population for several months.
The Vice Minister of Hydrocarbons of the Ministry of Energy and Mines (MEM), Erwin Barrios, confirmed that Work is already underway on the development of the regulations that will allow the benefit to be applied.
According to the official, This process is key to defining the technical aspects of the subsidy, which contemplates a reduction of Q5 per gallon on premium and regular gasoline, and Q8 on diesel.
As part of the implementation, gas stations must publish the reference price established by the MEM, which will allow consumers to compare and choose more convenient options, considers the institution.
Subsidy will be compensated to importers
Barrios clarified that the measure does not represent a profit for the distribution companies, since the State will only cover the difference that the consumer will no longer pay.
“The money that the consumer is not going to pay will be paid to the importer for part of this temporary support. We are anticipating actions to have the regulation ready within the period established after its publication.”he explained.
The subsidy arises in a context of international volatility in oil prices, with the aim of reducing economic pressure on Guatemalan households, says a statement shared by the MEM.
Temporary measure and subject to evaluation
According to the MEM, the support is temporary and It will be subject to evaluations in accordance with international market conditions.
Furthermore, the authorities assure that The objective of this policy is to contribute to stabilizing costs, especially in sectors that directly depend on the use of fuels, to promote the economic activity of the country.
Doubts about the impact
With this measure, the Government also intends to strengthen transparency and promote competition in the fuel market. However, Analysts say that the measure should be more focused so that the consumer and the population can perceive an improvement.
According to Paul Boteo, executive director of the Libertad y Desarrollo foundation, the subsidy is not delivered directly to users, but to distribution companies. This raises doubts about whether the reduction will be fully reflected in the final price paid by the consumer.
Due to the above, The effectiveness of the subsidy will depend on the moment in which it is approved, the duration of the crisis and the impact it has on public finances, says Boteo.