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Why is fuel expensive in Costa Rica?

July 13, 2016 by Staff News Writer

Although Costa Ricans got used to paying about 20,000 colones to fill up the tank of a small vehicle or 40,000 if it is a large car, these amounts are very high when compared to Central America’s prices.

According to Fernando Alvarado, Costa Rican Oil Refinery (RECOPE) price analyst, there are several factors that affect the final price paid by consumers.

In Costa Rica, users pay a single tax on fuels, which represents 41% out of the total price. In the rest of Central America taxes represent just 28% out of the fare.

In addition, in Costa Rica, a liter of super gasoline costs $ 0.93, while in Panama it is $ 0.66. However, if taxes are eliminated, the situation changes and Costa Rica becomes the country with the most economic gas.

Furthermore, the country has a refinery that doesn’t refine. It forces the state to import processed fuel.

Unlike El Salvador, Guatemala and Honduras, where self-service operates, in Costa Rica it is used the full service method, which means that there are people who help fill up clients’ tanks. Therefore, prices are higher.

RECOPE also explains that the fuel quality in Costa Rica is similar to European standards, as consequence, it is expensive.

crhoy.com

Related articles:

  1. Court says fuel rises can be used to pay employees benefits
  2. Learn why fuels are so expensive in Costa Rica
  3. Exchange rates drive increases for fuel prices and taxi fares
  4. RECOPE asks for fuel price increase
  5. Rise in oil prices does not change BCCR’s projections
  6. $89 million saved in oil bill

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