Guatemalan fuel consumers adapt to the new price cycleafter the state subsidy program of Q5 per gallon for premium and regular gasoline, and Q8 for diesel, ended last Thursday, July 2.
Representatives of the import and marketing chain reported this Saturday, July 4, that prices continue to adjust, while the inventories acquired with the subsidy are exhausted and shipments are renewed with the new values.
They added that the market returned to the conditions prior to the entry into force of the subsidy; That is, prices are governed by supply and demand, as well as by competitiveness between marketing companies.
The reference prices observed this Saturday in the metropolitan area, in the self-service mode, are: higher gasoline, Q37.09; regular gasoline, Q36.09, and diesel, Q35.29.
End of subsidy drives gradual increase
Fausto Velásquez, Sales Manager of Unopetrol Guatemala, and Enrique Meléndez, executive director of the Guatemalan Association of Gasoline Retailers (Ageg), explained that, once the subsidy was eliminated, an increase in prices was observed with respect to those in force during the application of state support.
“As market conditions are prevailing, it was to be expected that, as gas stations depleted their inventories, prices would rise little by little. That was the phenomenon that was observed in different sectors and localities. Some stations in the interior of the country had not yet applied the adjustment. There is a gradual increase, so we consider that it will become generalized during this weekend and at the beginning of the next,” said Velásquez.
The manager reiterated that the context of each region must be analyzed, since There are some places “in which it has risen and in others it has not. There are stations that have different prices when analyzing the entire environment.”
Velásquez added that this measure will have an impact on the consumer and recommended seeking savings in consumption, optimizing trips and maintaining vehicles, actions that contribute to strengthening the real salary of consumers of petroleum products.
Market absorbs the end of the subsidy
Meléndez explained that, once the subsidy is eliminated, an increase of between Q5 and Q8 per gallon is observed with respect to the prices in force during the application of state support.
He added that, at this time, the behavior of the international price of a barrel of oil and its derivatives is being monitored, so the evolution of prices will depend on the trend presented by those markets and their effects on the local market in the coming days.
The manager added that some stations began applying the adjustments last Friday, while others did so this Saturday.
Expect fuel stability
Regarding the trend of the local market for the coming days, Meléndez acknowledged that it will be necessary to wait for the prices set by the importing companies, so according to the behavior of supply and demandas well as the acquisition costs of these products in the international market.
“We would have to wait for their decisions for next week,” he said.
For Velásquez, the international market for a barrel of oil has shown stability, so no significant changes are expected with respect to current prices, in general terms.
“We are going to begin the traditional dynamic that responds to the international market by being one hundred percent importers,” he mentioned.
In any case, it is expected to know if the Ministry of Energy and Mines (MEM) will continue to publish the reference prices on Tuesdays, as it did while the subsidy was in force.