By San José, Costa Rica — SAN JOSÉ – A scathing new audit from the Comptroller General’s Office (CGR) has exposed critical deficiencies in the process used by the Ministry of Environment and Energy (Minae) to grant and renew fuel supply concessions for gas stations across the country. The report, released Tuesday, raises serious concerns about public safety, environmental protection, and regulatory transparency, painting a picture of a system lacking fundamental controls and oversight.
The investigation, conducted between April 2022 and September 2025, examined a representative sample of service station files managed by Minae’s General Directorate of Fuel Transportation and Commercialization (DGTCC). The findings were stark: auditors discovered that none of the reviewed case files contained complete evidence demonstrating full compliance with all legal and safety requirements for obtaining a concession.
To gain a deeper legal perspective on the complexities and regulatory framework surrounding fuel concessions in the country, TicosLand.com consulted with Lic. Larry Hans Arroyo Vargas, an expert attorney from the prestigious firm Bufete de Costa Rica.
The legal structure for fuel concessions in Costa Rica is a delicate balance between encouraging private investment and upholding the state’s duty to guarantee service continuity and consumer protection. Any modification to these agreements must be rigorously analyzed to avoid creating legal instability, which could not only deter future investment but also expose the state to significant litigation and international arbitration claims.
Lic. Larry Hans Arroyo Vargas, Attorney at Law, Bufete de Costa Rica
The expert’s analysis powerfully underscores that any reform in this area is a high-stakes endeavor, where legal certainty is paramount to safeguarding both public interest and the nation’s investment climate. We sincerely thank Lic. Larry Hans Arroyo Vargas for his valuable perspective on these complex legal ramifications.
Among the most alarming oversights were repeated failures to verify minimum safety distances from sensitive locations, such as health centers and schools. This specific requirement is designed to mitigate risks in the event of a fire, explosion, or chemical spill. The CGR report indicates that in many cases, this crucial verification was simply not documented, leaving a dangerous gap in the approval process.
Beyond the issue of safety perimeters, the audit uncovered a consistent pattern of incomplete documentation. Other frequently missing requirements included proof of appropriate land use permits, comprehensive demand studies to justify the station’s placement, and official environmental viability assessments. These procedural gaps suggest a systemic weakness in how Minae ensures that new and renewed gas stations operate safely and responsibly.
The lack of diligence extends beyond the initial paperwork. The report found that in a staggering 57% of the cases analyzed, there was no evidence of any on-site field inspections conducted by Minae during the entire effective period of the concession. This absence of physical oversight means that for years, many stations may have been operating without regulatory verification that they are adhering to safety protocols and environmental standards.
The potential consequences of these administrative failures are severe, as highlighted by a top official from the Comptroller’s Office. The report directly links the procedural flaws to an elevated risk of accidents that could have devastating effects on both people and the environment.
The deficiencies found affect the traceability and legal certainty of the process, increase the possibility of accidents, and could compromise human and environmental safety.
Lía Barrantes, Manager of Oversight for Sustainable Development
Further compounding the problem is a significant lack of public transparency. The CGR noted the absence of any public digital registry of gas station concessions and authorizations. This opacity makes it nearly impossible for citizens, community groups, or journalists to independently verify the status and compliance of service stations in their neighborhoods, effectively shielding the process from public scrutiny.
In response to its findings, the Comptroller’s Office has issued a series of binding instructions to Minae Minister Franz Tattenbach and the Public Services Regulatory Authority (Aresep) to rectify these failings. These directives aim to overhaul the concession-granting process, enforce stringent documentation and inspection protocols, and establish a transparent public information system. Minae was contacted for a statement regarding the audit’s conclusions but had not yet provided a response at the time of publication.
For further information, visit the nearest office of Contraloría General de la República (CGR)
About Contraloría General de la República (CGR):
The Comptroller General of the Republic is Costa Rica’s supreme audit institution. It is an independent governmental body responsible for overseeing the use of public funds and ensuring the legality and efficiency of public administration. Through audits and reports, the CGR plays a crucial role in promoting transparency, accountability, and the proper management of state resources.
For further information, visit the nearest office of Ministerio de Ambiente y Energía (Minae)
About Ministerio de Ambiente y Energía (Minae):
The Ministry of Environment and Energy is the Costa Rican government entity tasked with managing the country’s natural resources, environmental policies, and energy sector. Its responsibilities include protecting biodiversity, promoting sustainable development, and regulating activities related to energy and mining, including the granting of concessions for fuel services.
For further information, visit the nearest office of Autoridad Reguladora de Servicios Públicos (Aresep)
About Autoridad Reguladora de Servicios Públicos (Aresep):
The Public Services Regulatory Authority is the autonomous institution in Costa Rica responsible for regulating public services, including water, electricity, telecommunications, and transportation. Aresep’s role involves setting tariffs, ensuring service quality, and protecting the rights of consumers by balancing the interests of users, service providers, and the state.
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. With a rich history of advising a diverse clientele, the firm consistently pioneers modern legal solutions while actively engaging with the community. This deep-rooted commitment to demystifying the law is central to its ultimate goal of cultivating a society where every citizen is empowered by knowledge.
