He fuel subsidy in Guatemalaapproved by Congress on April 14must still complete a legal process before coming into effect and being reflected in the fuel prices to the consumer.
As the deputy explained Julio Hector Estradathe decree must be sanctioned by the Executive, officially published and regulated for its application.
“It is very important that the population knows and understands it: the decree has to be published, that has a minimum period of time,” indicated the legislator.
Procedure for it to become valid
The first step was that the “Emergency Support Law for Diesel and Gasoline Consumers” was known and had the votes of the majority of congressmen.
After its approval in Congress, the decree must be sent to the President of the Republic, Bernardo Arevalofor his sanction.
For his part, the Ministry of Energy and Mining (MEM) reported on April 15 that it was working on the regulationsor quickly.
Finally, the regulation must be published in the Central American Newspapera mandatory requirement for the law to take effect, one day later of said publication.
Estrada explained that this process could take approximately 10 and 15 daysdue to the period required for its official publication.
When will fuel prices drop in Guatemala?
According to legislator Estrada’s estimates, the impact of subsidy to fuels in Guatemala would begin to be reflected in service stations from May 1 or in the first days of the month.
“This should be hitting prices at the gas pump on May 1, or the first days of May,” he stated.
The design of the measure sought to accelerate its implementation through the use of mechanisms already applied in 2022 and 2023, avoiding new administrative processes.
How the fuel subsidy will be applied in Guatemala
The subsidy will be applied in the importer’s dispatch pointwhere will reduce the price before reaching the gas stations. This reduction must be reflected in the consumer’s final bill.
The scheme contemplates a reduction per gallon as follows
- Q8 per gallon in diesel
- Q5 per gallon on superior gasoline and
- Q5 per gallon in gasoline regular
Cost and duration of the fuel subsidy in Guatemala
The measure will cost Q2 billionfinanced through readjustments of the current budget for the year 2026, without increasing public debt.
The subsidy will last approximately three monthsmainly covering May, June and July, or until resources are exhausted.
Fuel prices are already falling
During the week of April 6, the announcement of a temporary ceasefire between United States and Iran began to stabilize international prices.
As a result, On April 10, a first reduction of up to Q0.50 per gallon in general, both in premium gasoline, regular and diesel.
However, this April 15, a new, more significant adjustment is observed:
- Until Q1.50 reduction in diesel
- Approximately Q1.00 in regular and higher gasoline
New fuel prices starting April 15
Prices vary depending on the station, but monitoring at five brands of gas stations and in 3 areas of the metropolitan area reflects the following ranges:
- Regular gasoline: between Q37.97 and Q37.99
- Top gasoline: between Q38.97 and Q38.99
- Diesel: between Q41.67 and Q41.69
In departments like Chimaltenango and Sacatepéquezsome stations already apply these prices, while others still maintain the previous values.