Controversy Brewing Over Gasoline Prices
Gasoline prices have been kept steady since the beginning of last month when we saw the last reduction of prices take place, followed by a slight increase resulting from a tax adustment.

A controversy is brewing as the Autoridad Reguladora de los Servicios Públicos (ARESEP) - the state regulatory agency - is considering lowering the prices of regular and super gasolines by as much as ¢50 colones (us$0.097) per litre, but not the price of diesel and other fuels like propane gas and aviation fuel, but rather will be increased.

If the ARESEP continues ahead with its plans to balance out the price of gasolines, a litre of regular will drop from the current ¢474 colones to ¢423 and super will drop from the current ¢504 colones to ¢440 colones per litre. However, diesel will jump from the current ¢346 colones per litre to ¢375 colones.

The price drop will mean a savings for many drivers and is being welcomed by the Cámara de Transportes. However, those most affected by the ARESEP "re-balancing" are bus companies and their customers, who will be paying more for fuel and will no doubt be seeking increases in fares.

Others affected as well is industry, companies that use trucks that run on diesel fuel to move goods and materials and others who use diesel to run generators, plants, machinery, etc.

Aviation will also be affected by the price increase and those who use propane in the kitchen or have have converted their vehicles to CNG fuel.

The ARESEP said yesterday that the price balancing will not affect the financial position of the state Refinadora Costarricense de Petróleo (RECOPE), who purchases crude oil, refines it and sell the end product to gasoline retailers around the country.

The public hearing for the proposal is set of December 7 and any objections to the proposal must be submitted to the ARESEP by not later than November 30th.

RECOPE does not establish gasoline prices, but rather, the prices are set by the ARESEP and are in effect at all gasoline retail locations in the country.