Fuel prices in El Salvador will continue to be the lowest in Central America

The economic measures related to the stabilization of fuel prices to protect the pockets of Salvadorans in the face of the global inflationary crisis, caused by the COVID-19 pandemic, the subsequent crisis in the supply chain and the war in Ukraine, will continue to be in force after the Legislative Assembly last night approved a list of four initiatives presented by the government of President Nayib Bukele.

These were previously delivered to the president of Congress, Ernesto Castro, by the Minister of Finance, Alejandro Zelaya. The first allows the continuity of price fixing, and with it, El Salvador will continue to have the lowest in the hydrocarbon market in the Central American region.

Zelaya reported that the economic measures implemented to contain the impact of rising fuel prices have allowed Salvadorans to save $293 million, that is, $1.5 million a day.

The maximum prices set are: $4.32 per gallon of special gasoline, $4.15 per gallon of regular gasoline, and $4.14 per gallon of diesel, by decree in force until October 20.

The second motion of the Executive voted by the legislators is related to the stabilization of the price of liquefied petroleum gas in the national market.

The government makes use of transitory legislation that allows the stabilization of the price of liquefied petroleum gas, but it did not arrive with this effect until yesterday. Congress approved its continuation until December 31st.

“This law keeps prices fixed at the normal values that the population can acquire. Salvadorans have saved, and for this reason, we are going to extend the period,” Zelaya said.

The other two initiatives endorsed last night by the legislature are related to the repeal of the FEFE taxes (Fund for Stabilization and Economic Development, $0.16) and Cotrans (Economic Compensation and Stabilization of Public Service Rates for Collective Passenger Transport, $0.10) charged on fuels.

These measures, in force since last September 1, now pass to the temporary special regulations that set maximum prices, so both provisions will no longer be in separate legal frameworks.

Zelaya clarified that the “State will continue to subsidize the difference between the prices set and those calculated with the reference formula,” even though the price of oil on an international scale tends to return to levels prior to the coronavirus pandemic.

The government has been implementing since last March a list of 11 economic measures to protect the pockets of Salvadorans in the face of the global economic crisis, which in some cases has led it to assume the costs, as in the case of fuel and liquefied gas from petroleum.

The president of Congress, Ernesto Castro, reiterated yesterday that from that government body they will continue to support the strategies promoted by the administration of President Nayib Bukele to protect the economy of Salvadorans, especially the most vulnerable sectors of the country.