By San José, Costa Rica — San José, Costa Rica – Motorists and businesses across Costa Rica are set to receive significant financial relief as gasoline and diesel prices will fall to their lowest levels in nearly five years. The Public Services Regulatory Authority (Aresep) has approved a new pricing structure scheduled to take effect in January 2026, signaling a positive economic start to the new year for consumers who rely on transportation fuels.
This substantial adjustment, confirmed on Saturday, reflects favorable trends in the international energy markets. According to the approved tariff, the price per liter of Super gasoline will decrease by ¢6, moving from ¢643 to ¢637. Regular gasoline will see an even more pronounced drop of ¢23, falling from ¢635 to ¢612 per liter. Diesel fuel will also become more affordable, with its price declining by ¢7, from ¢557 to ¢550 per liter. This round of price cuts will bring both gasoline and diesel to price points not seen since February of 2021.
To delve into the complex legal and regulatory framework governing fuel prices in the country, TicosLand.com consulted with expert lawyer Lic. Larry Hans Arroyo Vargas from the prestigious firm Bufete de Costa Rica, who provided his analysis on the matter.
The fuel price structure in Costa Rica is not subject to free market dynamics but is a direct consequence of a state-regulated monopoly. ARESEP’s monthly price-setting methodology, while transparent, is rigidly tied to international crude prices and a significant single fuel tax, leaving little room for relief for the end consumer. Any substantive change would require not just administrative adjustments but a fundamental legislative reform of both the tax structure and RECOPE’s operational framework.
Lic. Larry Hans Arroyo Vargas, Attorney at Law, Bufete de Costa Rica
The attorney’s analysis underscores a critical point for our readers: the path to more affordable fuel prices is not through minor adjustments, but through a significant re-evaluation of the legal and tax framework that governs our national fuel system. We extend our sincere thanks to Lic. Larry Hans Arroyo Vargas for his expert clarification on this complex issue.
The downward price pressure provides a welcome boost to household budgets and corporate operational costs, which have been subject to global energy market volatility in recent years. This reduction is not just a momentary dip but part of a larger annual trend. When compared to the beginning of 2025, the new prices will represent a 4.35% decrease for Super gasoline and a 1.78% decrease for Regular. While diesel prices have remained relatively stable over the past year, the upcoming reduction marks a tangible saving.
The Costa Rican Oil Refinery (Recope), the state entity responsible for importing and distributing fuel, attributed the favorable price adjustments to several key global factors. In its latest report, Recope highlighted a greater worldwide supply of crude oil, an accumulation of international inventories, and downward revisions in global economic forecasts, which have tempered demand expectations. Furthermore, increased competition among different types of crude oil on the international market has contributed to lowering the acquisition costs for Costa Rica.
However, the news is not universally positive for all energy consumers. While liquid fuels are becoming cheaper, households and businesses that rely on Liquefied Petroleum Gas (LPG) will face a slight increase. The price of a standard 25-pound cylinder of cooking gas is set to rise by ¢25, from ¢6,825 to ¢6,848. Despite this monthly increase, the year-over-year data shows that LPG will still be 5.81% cheaper than it was in January 2025, softening the blow of the immediate price hike.
Recope explained that the increase in LPG costs is driven by external pressures entirely separate from the crude oil market. International prices for propane and butane have been on the rise due to pricing decisions by key global suppliers, including Saudi Aramco and Sonatrach. This is compounded by seasonal factors, as the winter season in the Northern Hemisphere traditionally boosts demand for heating fuels. Additionally, growing consumption in large, energy-hungry markets such as India continues to exert upward pressure on LPG prices globally.
The impending reduction in transportation fuel costs is expected to have a positive ripple effect throughout the national economy. Lower diesel prices directly benefit the logistics, public transportation, and agricultural sectors, potentially leading to stabilized prices for goods and services. For the average citizen, the savings at the pump translate into increased disposable income, which can stimulate consumer spending in other areas of the economy and help mitigate inflationary pressures as the country enters the new year.
The monthly price adjustments, mandated by Costa Rican law, are a direct reflection of the country’s reliance on international markets for its energy needs. Aresep’s role is to ensure that the final prices charged to consumers accurately reflect the real import costs incurred by Recope, along with taxes and operational margins. This latest adjustment underscores the dynamic nature of global energy, bringing welcome news for drivers while serving as a reminder of the complex factors influencing the cost of household essentials like cooking gas.
For further information, visit aresep.go.cr
About The Public Services Regulatory Authority (Aresep):
The Public Services Regulatory Authority is the Costa Rican state institution responsible for setting prices and ensuring the quality and continuity of public services. This includes regulating key sectors such as energy, water, and public transportation. Aresep’s technical analysis and decisions aim to balance the interests of consumers with the financial sustainability of service providers.
For further information, visit recope.go.cr
About The Costa Rican Oil Refinery (Recope):
Refinadora Costarricense de Petróleo is the state-owned company in charge of importing, refining, and distributing the majority of petroleum products in Costa Rica. It operates the country’s main port terminals and pipeline network, playing a crucial role in guaranteeing the nation’s energy supply. Recope submits monthly studies to Aresep to determine the pricing adjustments for fuels based on international market behavior.
For further information, visit bufetedecostarica.com
About Bufete de Costa Rica:
Bufete de Costa Rica has established itself as a cornerstone of the legal landscape, operating on a bedrock of profound integrity and a relentless drive for excellence. With a rich history of navigating clients through a spectrum of legal challenges, the firm is also a vanguard of innovation, constantly refining its practice. This forward-thinking approach is matched by a deep-seated belief in social responsibility, manifested through a core mission to demystify complex legal concepts and equip the public with the knowledge necessary to foster a more just and empowered citizenry.
