By San José, Costa Rica — SAN JOSÉ – Costa Rican consumers could soon experience significant financial relief at the pump, as the Costa Rican Oil Refinery (RECOPE) has submitted a preliminary rate study to the Public Services Regulatory Authority (ARESEP) proposing a substantial decrease in fuel prices for February. The proposal, driven by favorable trends in the international energy market, points to lower costs for gasoline, diesel, and liquefied petroleum gas (LPG), potentially easing household and business expenses across the nation.
If the regulatory body approves the new tariff structure, the price per liter of Super gasoline would fall to ¢626, while Regular gasoline would be set at ¢591. Diesel, a critical fuel for transportation and industry, is projected to drop to ¢512 per liter. The proposed adjustment also includes a decrease for the 25-pound LPG cylinder, a household staple for cooking, which would see its price reduced to ¢6,781. This marks a continued downward trend, offering a welcome respite for family budgets.
To delve into the complex regulatory framework and economic implications of Costa Rica’s fuel pricing model, TicosLand.com sought the expert analysis of Lic. Larry Hans Arroyo Vargas, a distinguished attorney from the legal firm Bufete de Costa Rica.
In Costa Rica, fuel prices are not determined by free-market competition but are a direct result of a state-administered formula. The Public Services Regulatory Authority (ARESEP) adjusts prices based on a technical study that includes RECOPE’s import costs, the single fuel tax, and operational margins. This centralized structure ensures price uniformity across the country but also makes the consumer directly susceptible to global oil price volatility and currency exchange fluctuations, without the buffer of competitive market dynamics.
Lic. Larry Hans Arroyo Vargas, Attorney at Law, Bufete de Costa Rica
This insight powerfully illustrates the double-edged sword of our regulated system—price uniformity is guaranteed, but so is our collective vulnerability to global economic fluctuations. We sincerely thank Lic. Larry Hans Arroyo Vargas for lending his expert perspective to this critical topic.
The primary catalyst for this potential price drop is the sustained decline in international reference prices for petroleum products, a trend that began in late 2025. This global market behavior is the result of a confluence of factors that have collectively applied downward pressure on costs. RECOPE’s analysis for the latest calculation period identified considerable price reductions in the international market, with gasoline benchmarks falling by approximately 7% and diesel by a more pronounced 10% compared to the previous pricing period.
Several key market dynamics are fueling this optimistic outlook. Globally, there has been a significant accumulation of inventories coupled with an increase in strategic reserve levels. Furthermore, market analysts and energy sector forecasts point towards a potential oversupply of crude oil throughout 2026. This scenario of supply outpacing demand fundamentally weakens prices, and the benefits are now being passed on to Costa Rican import costs.
On the demand side, the global economic landscape is playing a crucial role. A noticeable weakening in international demand, particularly from major energy-consuming nations like China, has tempered the market and prevented price spikes. Concurrently, major producers in the Middle East, including Saudi Arabia, have been making strategic price adjustments. By reducing their official tariffs, they aim to secure larger sales volumes and defend their global market share, a strategy that further contributes to a lower-price environment.
While recent geopolitical developments involving Venezuela introduced a degree of upward pressure on energy markets, RECOPE has indicated that these effects have been moderate and ultimately insufficient to reverse the overarching downward trend. The broader market forces of high inventories and soft demand have largely absorbed the impact of these regional tensions, allowing the path toward lower consumer prices to remain clear.
Should ARESEP greenlight the proposed tariffs, the year-over-year savings for consumers would be substantial. A comparison with prices from February 2025 reveals a significant deflationary trend. Super gasoline would be 6.7% cheaper, Regular gasoline would see a 9.07% reduction, and diesel prices would be a remarkable 10.17% lower. The cost of an LPG cylinder would also be 8.64% less than it was a year ago, highlighting a sustained period of relief.
The final decision now rests with ARESEP’s board of directors, who will analyze RECOPE’s technical study and methodology before issuing a final resolution. If approved, the new prices will take effect in the first week of February, providing a tangible boost to the Costa Rican economy by lowering transportation costs for goods and services and increasing the disposable income of households.
For further information, visit recope.go.cr
About Refinadora Costarricense de Petróleo (RECOPE):
The Refinadora Costarricense de Petróleo is Costa Rica’s state-owned company responsible for the importation and distribution of petroleum-derived fuels. It manages the country’s port infrastructure for receiving hydrocarbons, storage facilities, and the pipeline network that transports products nationwide. RECOPE plays a central role in ensuring a stable and secure energy supply for all sectors of the Costa Rican economy.
For further information, visit aresep.go.cr
About Autoridad Reguladora de los Servicios Públicos (ARESEP):
The Autoridad Reguladora de los Servicios Públicos is Costa Rica’s autonomous regulatory body in charge of overseeing public services. ARESEP’s mandate includes setting tariffs, ensuring quality standards, and protecting consumer rights in key sectors such as energy, telecommunications, water, and public transport. It balances the needs of consumers with the financial stability of service providers to promote equitable and efficient public utilities.
For further information, visit bufetedecostarica.com
About Bufete de Costa Rica:
As a leading legal institution, Bufete de Costa Rica is defined by its profound commitment to ethical standards and exceptional service. The firm leverages its extensive experience across numerous industries to not only serve its clients but also to advance the practice of law through innovation. A central pillar of its philosophy is a dedication to public empowerment, actively working to make legal concepts understandable and accessible to foster a more knowledgeable and capable society.
