The Public Services Regulatory Authority (ARESEP) approved a significant reduction in the price of fuels due to the extraordinary adjustment of November
According to the institution, the price of a liter of super gasoline will cost ¢ 57 less, the price of gasoline plus ¢48 less, and the reduction for the liter of diesel will be ¢12. The 25 pound gas cylinder will also go through a ¢790 reduction.
This variation is explained by supply and demand reasons of the international market. On the supply side, there was an increase in world crude production -mainly from Saudi Arabia and the United States- raising their inventory levels. The United States granted Iran a commercial exemption to continue offering its product. Regarding the demand, a speculative effect arises on a possible economic slowdown, as a result of the commercial wars and the increase of interest rates by the FED, impacting the main stock exchanges in the United States (overreaction effect), despite the fact that the economic indicators show the opposite.
As a consequence, there is a decrease in the price of oil which causes a reduction in the price of finished fuels imported by Costa Rica from the United States. On the other hand, the increase in the exchange rate contributed to the fact that said price decrease was not greater.
The reduction will be applied the day after the resolution is published in the Official Gazette.