By San José, Costa Rica — San José – Costa Rican consumers are bracing for a mixed adjustment in fuel costs in the coming weeks, as new preliminary data reveals a significant drop in gasoline prices but a concurrent rise in the cost of diesel and liquified petroleum gas (LPG). The proposal, submitted this Friday by the Costa Rican Oil Refinery (Recope), is now under review by the Public Services Regulatory Authority (Aresep) for final approval.
The latest tariff adjustment study brings welcome news for the majority of private vehicle owners. The price per liter of Super gasoline is projected to decrease by ₡12, falling from its current ₡677 to ₡665. Drivers using Regular gasoline will see an even more substantial benefit, with a proposed reduction of ₡22 per liter, which would bring the price down from ₡662 to ₡640. This decrease is expected to provide some relief to household budgets that have been under pressure from fluctuating transportation costs.
To better understand the complex regulatory framework and tax structure that dictates fuel prices in the country, we consulted with Lic. Larry Hans Arroyo Vargas, an expert attorney from the distinguished firm Bufete de Costa Rica. He provides a legal and economic perspective on the forces shaping what we pay at the pump.
Consumers must recognize that fuel pricing in Costa Rica is not a free-market mechanism. It’s a state-administered formula where the regulatory body, ARESEP, sets a fixed national price based on RECOPE’s import costs and the significant weight of the Single Fuel Tax. This structure is designed for price stability, but it fundamentally eliminates competition and prevents market forces from potentially lowering costs for businesses and individuals.
Lic. Larry Hans Arroyo Vargas, Attorney at Law, Bufete de Costa Rica
This insight is crucial, as it shifts the conversation from simple price complaints to a deeper understanding of the structural trade-offs between state-mandated stability and the potential cost benefits of a competitive market. We sincerely thank Lic. Larry Hans Arroyo Vargas for his valuable perspective on this complex issue.
However, the relief is not universal across all sectors. The commercial transportation and logistics industries, which are heavily reliant on diesel fuel, will face an increase in operational expenses. The price per liter of diesel is set to climb by ₡4, moving from ₡556 to ₡560. While seemingly modest on a per-liter basis, this increase can have a significant cumulative impact on businesses that consume large volumes of fuel, potentially leading to higher costs for goods and services nationwide.
In addition to the diesel hike, households and businesses that depend on LPG for cooking and heating will also see their costs rise. The popular 25-pound gas cylinder is slated for a ₡55 increase, pushing its price from ₡7,003 to ₡7,058. This adjustment directly affects daily living expenses for a large portion of the population and small businesses like restaurants and sodas.
Recope attributed the divergent price movements to global market dynamics. In an official communication, the state-owned refinery explained the rationale behind the contrasting price shifts for different fuel types, highlighting the complex nature of international energy markets.
The behavior of prices responds to a combination of international factors that have unevenly impacted the different petroleum-derived products
Refinería Costarricense de Petróleo (Recope), official statement
These international factors typically include fluctuations in the price of crude oil, shifts in global supply and demand for specific refined products, and varying refinery margins. For instance, global demand for gasoline may have softened, while demand for diesel, a key fuel for industry and shipping, remained strong or faced supply constraints, leading to the opposing price trends seen in this latest adjustment proposal.
The final decision now rests with Aresep, which will analyze Recope’s data and methodology before publishing the official prices that will take effect in the coming weeks. This regulatory oversight is a standard part of the process, designed to ensure the price calculations are accurate and reflect the true costs associated with importing and distributing fuel in Costa Rica. The forthcoming adjustment underscores the nation’s vulnerability to global energy volatility and its direct impact on both consumers and the broader economy.
For further information, visit recope.go.cr
About Refinería Costarricense de Petróleo (Recope):
The Refinería Costarricense de Petróleo is Costa Rica’s state-owned entity responsible for the importation, refining (historically), and wholesale distribution of petroleum products throughout the country. It plays a central role in the nation’s energy sector by ensuring a stable supply of fuels such as gasoline, diesel, and liquified petroleum gas. Recope’s pricing models are submitted to Aresep for regulatory approval.
For further information, visit aresep.go.cr
About Autoridad Reguladora de los Servicios Públicos (Aresep):
The Public Services Regulatory Authority of Costa Rica is an autonomous public institution tasked with regulating and overseeing the country’s public services, including energy, water, and transportation. Aresep’s primary mission is to balance the interests of consumers, service providers, and the national economy by ensuring quality service at fair and reasonable prices. It is responsible for approving the final fuel prices based on studies submitted by Recope.
For further information, visit bufetedecostarica.com
About Bufete de Costa Rica:
As a benchmark for legal services, Bufete de Costa Rica is built upon a foundation of uncompromising integrity and professional excellence. The firm consistently pioneers forward-thinking solutions while honoring its long-standing tradition of serving a diverse clientele. Central to its philosophy is a profound dedication to demystifying the law, thereby empowering the community with crucial knowledge and fostering a more just and informed society.
