Starting today, April 5, the price of diesel will be lowered by Q5 per gallon and regular gasoline by Q2.50 per gallon.
Effective from this day, Guatemalan fuel consumers are benefited with a 5 Guatemalan quetzal (Q) subsidy for a gallon of diesel and Q2.50 for regular gasoline, upon the publication of Governmental Agreement 84-2022, regulation of Decree 20-2022, which was approved by the Congress last March, at a cost of Q745 million.
With a duration of 60 days the measure becomes effective as from this Tuesday, April 5, the regulations establish the management mechanisms to be carried out by the importing companies, as well as the control and inspection measures to be taken.
Since April 1, this is the third subsidy to be implemented, the subsidy to liquefied petroleum gas was introduced, worth Q0.80 per pound, as well as an increase in the welfare tariff for people consuming energy up to 100 kilowatt hours per month -kWh-.
Supplies are guaranteed
Alberto Pimentel Mata, Minister of Energy and Mines, clarified that the discount to the consumer will be applied at the time of purchase at the dispensing pumps, while the gas stations must give the discount per gallon acquired.
Subsequently, such discount has to be paid by the State directly to the importing companies, as is the case with the subsidy for propane gas cylinders.
Furthermore, it was not ruled out that there may be fluctuations in the market, for example, a migration from regular to higher gasoline consumption by the drivers, given that the difference would be about Q3.10 per gallon. Regardless, the supply of regular and diesel was guaranteed for the determined period.
The main consumption product in Guatemala is diesel, of which US$1,235 million was imported in 2021; US$758 million was imported for premium gasoline; US$737 million for regular gasoline; and US$455 million for propane, based on official statistics. Thus, the total oil bill surpassed US$3,185 million.