MEM explains what is driving the rise

Home Business MEM explains what is driving the rise
MEM explains what is driving the rise

The fuel prices increased again in Guatemala and the diesel became the product with the greatest impact for consumers, especially due to its importance in the supply chain, being located in Q39.59 per gallonvery close to the Q40.

Only during this week they registered two incrementsMonday and Thursday. According to information confirmed by the Ministry of Energy and Mines (MEM)the most recent adjustment raised the price of diesel by Q2 per gallonwhile gasoline increased Q0.50 per gallon.

Although the MEM’s publication on social networks indicated that the previous ones were valid for one week, from July 13 to 19, on July 16, service stations announced a new increase for the three types of fuel: diesel, regular and super.

This is how fuel prices remained

With information provided by the MEM and, after checking some gas stations, After the last adjustment, the prices in self-service mode are as follows:

  • Top gasoline: Q39.59 per gallon.
  • Regular gasoline: Q38.59 per gallon.
  • Diesel: Q39.59 per gallon.

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Diesel, on the rise

Since the end of the fuel subsidythe past July 2the behavior of prices has been upward.

On that date, the diesel began to sell to Q35.29 per gallon. During the first adjustments it registered increases of up to Q1, but the increase applied on July 16 represented a leap of Q2raising the price up to Q39.59in numbers, Q4.30 more than at the end of state support.

The top gasolinewhich began in Q37.07 per gallon after the withdrawal of the subsidy, it also reached Q39.59. In less than 15 days, Guatemalans must have Q2.52 more to buy a gallon of this type of gasoline.

Lastly, the regular gasoline went from Q36.09 to Q38.59 per gallon in the same period, an increase in sum of Q2.50 in a fortnight. It is the type of fuel that has had the smallest increase in the same period, although that does not mean that it does not impact consumers’ pockets.

International factors drive the increase

Heydy Gódines, head of the Economic Analysis Department of the General Directorate of Hydrocarbons, explained that the increase observed on Thursday responded to the behavior of the international market.

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According to the official, the gasoline increased Q0.50 per gallon and the diesel Q2 per gallonwhich left prices at Q39.59 for top gasoline, Q38.59 for regular gasoline and Q39.59 for diesel.

Gódines added that since the beginning of July the international fuel prices have registered increases due to the deterioration of the geopolitical environment in Middle Eastincreasing risks to global supply, new airstrikes from USA and the temporary suspension of negotiations between United States and Iran.

He indicated that these factors have a direct impact on Guatemala, and stressed that the country imports 100% of fuels that consumes.

Five increases since the end of the subsidy

With the adjustment applied this week, the fuels accumulate five increments since the government subsidy ended July 2.

In addition, Minister Edwin Barrios of the MEM reported on July 14 that, for now, A new budget package is not under analysis to reestablish economic support that cushions the cost of fuel for consumers.

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