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Economy
Fuel subsidies in Guatemala: what amounts have been granted and when they were applied
The Government once again proposed new support for fuels, but it is not the first time that this measure has been applied. These have been all subsidies granted in recent years.
A fuel dispensing gun at a service station. The Government proposes a new subsidy for diesel and regular gasoline due to the rise in international prices. (Free Press Photo: Shutterstock)
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The Government of Guatemala once again resorted to fuel subsidy as a measure to cushion the impact of the increase in international prices on consumers’ pockets.
President Bernardo Arévalo announced a bill that proposes a temporary support of Q12 per gallon of diesel and Q3 per gallon of regular gasoline, which would be valid until the end of 2026 if it receives the endorsement of the Congress of the Republic.
The proposal arises in a context of new international tensions that have put upward pressure on oil prices.
According to the Executive, the mechanism seeks to contain the impact that rising fuel prices can have on transportation, production and, consequently, the cost of living of Guatemalan families.
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The most recent subsidies
Although it is about Highest subsidy proposed for diesel in recent yearsit is not the first time that the State resorts to this type of support.
The most recent precedent occurred between April 28 and July 2, 2026when the Government implemented a temporary subsidy of Q8 per gallon of diesel and Q5 per gallon of regular gasoline.
The measure also responded to the increase in international oil prices and was presented as a tool to reduce inflationary pressures in transportation, production and the cost of basic products.
Before that program, Guatemala had resorted to a similar subsidy in 2022, when the Russian invasion of Ukraine caused a sharp increase in the international price of oil.
Initially, Congress approved support of Q5 per gallon for diesel and Q2.50 for regular gasolinewhile premium gasoline was excluded.
Weeks later, given the persistence of the international rise, the program was expanded. The diesel subsidy increased to Q7 per gallon and both regular and premium gasoline received support from Q5 per gallon.
Unlike those episodes, during the Covid-19 pandemic, Guatemala did not apply a fuel subsidy, as the drop in global demand significantly reduced oil prices.
If Congress approves the initiative presented by the Executive, the country would apply this mechanism again to mitigate the effects of a new international escalation in fuel prices.


