“What I can tell you is that, in accordance with the regulations of Decree 11-2026, service stations that have already exhausted inventories purchased without a subsidy are already applying the subsidy”said Enrique Meléndez, executive director of the Guatemalan Association of Gasoline Retailers (Ageg), when referring to the implementation of the measure in the market.
The mechanism establishes that the economic support is directly reflected in the price to the final consumer, so users begin to perceive a reduction in the cost per gallon as the stations renew their stocks.
The subsidy was approved as a temporary measure to mitigate the impact of the rise in international oil prices. As established in current regulations, this benefit will last for three months and will apply only during the period defined by Congress, while the behavior of the energy market is monitored.
Progressive application
The implementation was not immediate last week at all gas stations, because many still had inventory acquired before the subsidy came into effect. However, as new batches of fuel are marketed, the discount is already reflected more uniformly in different regions of the country.
Authorities have explained to Prensa Libre that the subsidy is not delivered directly to consumers, but to importers and distributors, who must transfer it to the final price, but the consumer can see it reflected in the invoices.
Concern in the transportation sector
Despite the widespread application of the subsidy, representatives of the transportation sector have expressed concern about the volatility in international oil prices, which could limit the impact of the measure.
“We are seeing that the main problems that motivated this increase – the conflict between the United States and Iran – have not yet been resolved and that, in the coming days, there will probably be a new increase, and the main problem of passage through the Strait of Hormuz continues. That could complicate the increases continuing to occur,” laments Héctor Fajardo, director of the Chamber of Central American Transporters.
Transporters warn that, although state support offers temporary relief, fluctuations in the international market could cause new increases once the subsidy ends or if prices continue to rise.
“The subsidy allows us to mitigate the impact, because the eight quetzales that apply with the subsidy do serve, not only the carrier. They serve so that the prices of the basic basket do not have such a severe factor in the increase in prices,” considers Fajardo.
In addition, they point out that uncertainty makes it difficult to plan operating costs, especially for cargo and passenger transportation, which largely depends on fuel prices.
“There will probably be a new increase, let’s say, and the main problem of passage through the Strait of Hormuz continues. That could complicate the increases continuing to occur”
Temporary measure
The subsidy was designed as a short-term response to rising global oil prices. As established in the decree, its validity is subject to a defined period, after which the market would once again be governed by international prices without state intervention.
Meanwhile, authorities recommend that consumers check prices at different service stations, since the application of the subsidy may vary depending on when each gas station has renewed its inventory.
The evolution of the international market and public policy decisions will be decisive in establishing whether this type of support is maintained, expanded or eliminated in the coming months.
Until April 30, the Consumer Services Directorate carried out 299 verifications of fuel prices at gas stations. On its web portal, diaco.gob.gt, you can report irregularities in gasoline prices.
