American Expatriate Costa Rica

Court says fuel rises can be used to pay employees benefits

With four votes in favor and three against, the Constitutional Court decided that the financial need to cover employees benefits justifies fuel price increases by the state oil refinery (RECOPE).

The sentence invalidates a decision by the Public Services Regulatory Authority (ARESEP), which discounted 5 billion in personnel costs from estimation to justify a rise on fuel prices.

ARESEP’s reasoning was that a series of contractual benefits were not related to the fuel distribution service. After the court decision, now these costs can be added to the prices consumers have to pay.

Source: La Nación.