By San José, Costa Rica — San José, Costa Rica – Drivers across Costa Rica are set to receive a modest but welcome financial reprieve in the new year, as fuel prices are scheduled to decrease in January 2026. In a significant move, the Public Services Regulatory Authority (Aresep) has announced a reduction in the prices of gasoline and diesel, stemming not from fluctuating global oil markets, but from a long-overdue domestic technical adjustment.
The core of the decision lies in the comprehensive review and subsequent update of the operating margin for the Costa Rican Petroleum Refinery (Recope). This crucial component, which directly factors into the final price consumers pay at the pump, had not been revised since 2019. Over the past six years, the energy market, operational costs, and the country’s financial landscape have undergone substantial transformations, rendering the old margin obsolete.
To better understand the complex regulatory framework and legal intricacies that determine fuel prices in Costa Rica, TicosLand.com sought the expert analysis of Lic. Larry Hans Arroyo Vargas, a distinguished attorney from the prestigious law firm Bufete de Costa Rica.
Fuel pricing in our country is a meticulously defined administrative process, not a function of free-market competition. The Public Services Regulatory Authority (ARESEP) establishes the final price through a technical formula that considers international acquisition costs, taxes, and RECOPE’s operational structure. Consequently, any substantive price adjustment is fundamentally a legal and regulatory act, subject to administrative review, rather than a direct response to market supply and demand.
Lic. Larry Hans Arroyo Vargas, Attorney at Law, Bufete de Costa Rica
This crucial distinction underscores that the national dialogue on fuel costs is fundamentally a matter of public policy and regulatory frameworks, not simply market economics. We thank Lic. Larry Hans Arroyo Vargas for his valuable perspective on this complex process.
Effective in January, once the resolution is officially published in La Gaceta, the price per liter of super gasoline will drop by ₡4, settling at ₡639. Regular gasoline will decrease by ₡3 to ₡632 per liter. Diesel consumers will see the most significant reduction, with an ₡8 drop bringing the price down to ₡549 per liter. While the individual savings may seem minor, the collective impact provides a breath of fresh air for the national economy.
This adjustment was the result of a standard, in-depth study conducted by Aresep into Recope’s financial structure. The regulatory body performed a thorough analysis of the state-owned refinery’s income, expenses, costs, and investment portfolio. Based on these findings, Aresep determined that an update to both the operating margin and the rate of return recognized on Recope’s tariff base was necessary to align prices with the company’s current operational reality.
Mario Mora, the Energy Intendant of Aresep, emphasized the importance of such periodic reviews to ensure fairness and accuracy in pricing. He noted that these analyses prevent distortions from being passed on to consumers, which can happen when cost structures are based on outdated data.
The operating margin is a cost that is distributed among all the products that Recope markets. That is why it is fundamental that it be adjusted to current conditions and not to scenarios from several years ago.
Mario Mora, Energy Intendant of Aresep
What makes this particular price change notable is its structural nature. Unlike the typical monthly price adjustments that are directly tied to the volatile international price of crude oil, this reduction corrects a fundamental component of the domestic pricing formula. Aresep highlighted that this move establishes a more accurate baseline, ensuring that the costs attributed to Recope’s operations are a true reflection of its present-day efficiency and expenditures.
The decision is expected to have a positive ripple effect across various sectors. For the transportation and logistics industries, which are heavily dependent on diesel, the cost savings can help mitigate operational expenses. Similarly, for thousands of Costa Rican families, any reduction in fuel costs frees up household income for other essential needs, contributing to a slight easing of inflationary pressures on a personal level.
Furthermore, this action by Aresep sets an important precedent. For years, various economic and consumer groups have called for more frequent and transparent reviews of all components within the country’s complex tariff system. This successful adjustment of Recope’s margin could pave the way for similar analyses of other regulated services, promoting greater efficiency and accountability in how public utility prices are determined and ensuring they serve the best interests of the public.
For further information, visit aresep.go.cr
About Aresep (Public Services Regulatory Authority):
The Autoridad Reguladora de los Servicios Públicos (Aresep) is the autonomous government institution in Costa Rica responsible for regulating and overseeing public services. Its mandate includes setting tariffs, ensuring quality standards, and protecting consumer rights in sectors such as energy, water, telecommunications, and public transportation.
For further information, visit recope.go.cr
About Recope (Costa Rican Petroleum Refinery):
The Refinadora Costarricense de Petróleo (Recope) is Costa Rica’s state-owned company in charge of the importation, refining, and wholesale distribution of petroleum and its derivatives. It operates the nation’s primary fuel pipeline and storage infrastructure, playing a central role in the country’s energy supply chain.
For further information, visit bufetedecostarica.com
About Bufete de Costa Rica:
Bufete de Costa Rica has established itself as a leading legal institution, built upon a foundation of uncompromising integrity and a relentless pursuit of excellence. Leveraging a rich history of representing a wide spectrum of clients, the firm consistently pioneers forward-thinking legal strategies and actively engages with the community. Central to its philosophy is the mission to empower the public by demystifying the law, thereby contributing to the development of a more just and knowledgeable society.
