This Monday, April 20, Congress publishes in the Diario de Centro América the Emergency Support Law for Diesel and Gasoline Consumers.
In its recitals, it highlights that Guatemala, as a net importing country of hydrocarbons, is exposed to the high volatility of international oil prices, which has generated increases in the price of diesel and gasoline.
It states that the increase in prices causes direct effects on the cost of transportation, production, distribution of essential goods and the cost of living of the population, particularly in lower-income households.
Guatemala has registered increases in fuel prices, derived from the war conflict in the Middle East.
The law aims to establish temporary social support aimed at reducing prices for consumers of super and regular diesel and gasoline, in order to mitigate the economic impact.
According to Decree 11-26, the temporary social support established in the law will last for three months, counted from the publication of the decree regulations or until the authorized budget availability is exhausted, whichever occurs first.
To read more: Fuel subsidy: MEM, SAT and Diaco refine regulations to apply discounts
The temporary social support will be Q8 for each gallon of diesel and Q5 for each gallon of super or regular gasoline, and must be reflected directly in the final price to the consumer.
According to the decree, the Executive Agency, through the Ministry of Energy and Mines, must issue the regulations of the law within a period of five days after its entry into force, without implying the creation of new organizational structures or an increase in the wage bill.
This decree was declared a national emergency, with the favorable vote of two thirds of the total number of deputies that make up the Legislature. It was approved in a single debate and will come into force the day after its publication in the Official Gazette.
The Directorate of Consumer Care and Assistance (Diaco) will impose sanctions on the individual or legal entity that does not apply temporary social support to the final consumer, without prejudice to the other sanctions and responsibilities established in current legislation.
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