The Salvadoran Congress approves an initiative to set maximum fuel prices and avoid a new rise

With 78 votes in favor, the Legislative Assembly approved this Monday night, during an extraordinary plenary session, setting fuel prices at the national level, with the aim of preventing the international rise in oil prices.

The initiative was presented by the President of the Republic, Nayib Bukele, through the Minister of Economy, María Luisa Hayem; and the Minister of Finance, Alejandro Zelaya. The authorities specified that the initiative consists of two components: setting maximum fuel prices and ensuring that the government can absorb this recent fuel increase.

With the new maximum prices set, the values ​​will be: $4.31 for Superior Gasoline; $4.31 for the central and western zones; and $4.32 for the eastern side of the country. Regular gasoline: $4.15 in the three zones of the country. Diesel: $4.14 for the entire territory.

If this initiative had not been approved, gasoline prices would have been as follows: Superior with a price of $5.43; Regular at $5.20; and Diesel at $5.44.

«A gallon of regular fuel at the market price and with the new increase tomorrow would cost approximately $5.20. Thanks to the fact that the COTRANS, FEFE, part of the VAT is not charged and will have the new subsidy, it will cost $4.15 despite future increases in the world price» — explained the congressman Rodrigo Ayala.

Despite the rise in the price of oil on a global scale and the increase in the value of gasoline throughout Central America, El Salvador will continue to have the lowest prices in the region, bringing relief to the country’s economy and its population.

These prices will be valid until May 31. As Finance Minister Alejandro Zelaya explained, if there are decreases in the following months, the respective adjustments will be made.

During the presentation of the initiative, the Minister of Economy, María Luisa Hayem, explained that the mechanism that is going to be implemented in this measure also consists of an alliance with the fuel importing companies, which will have «the obligation to pass this subsidy that the government will be channeling through these importers to the service stations.»

She added that the sanctions, if they fail to comply with this measure, could reach up to 500 minimum wages for importing companies that do not transfer that subsidy.