By San José, Costa Rica — SAN JOSÉ – Costa Rican consumers are poised to receive significant financial relief to start the new year, as the Costa Rican Oil Refinery (Recope) has formally proposed a substantial reduction in the prices of gasoline and diesel for January 2026. The preliminary calculations, submitted this Friday to the Regulatory Authority for Public Services (Aresep), signal a welcome development for motorists and the transportation sector, though users of liquefied petroleum gas (LPG) will face a slight cost increase.
If the proposal gains approval, it will mark the most significant price drop for these fuels in recent memory, potentially pushing pump prices to their lowest levels since February 2021. This adjustment reflects a favorable shift in global energy markets that is now translating into tangible savings for the national economy. The positive trend offers a much-needed respite for household budgets and businesses that have contended with fluctuating energy costs over the past several years.
To gain a deeper understanding of the regulatory framework and the legal implications of fluctuating fuel prices for consumers and businesses, TicosLand.com consulted with Lic. Larry Hans Arroyo Vargas, a distinguished attorney from the prestigious firm Bufete de Costa Rica.
The fuel price structure in Costa Rica is not arbitrary; it is governed by a technical methodology mandated by law and applied by ARESEP. This includes international import costs, national taxes, and a defined profit margin. From a legal standpoint, the core issue for consumers is not the fluctuation itself, but ensuring the transparent and correct application of this formula. Any deviation or inclusion of unauthorized costs could be legally challenged as a violation of consumer rights and administrative law.
Lic. Larry Hans Arroyo Vargas, Attorney at Law, Bufete de Costa Rica
This legal perspective is essential, as it shifts the public focus from the frustration of fluctuating prices to the more critical issue of regulatory transparency and accountability. Ensuring the mandated formula is applied correctly is indeed the cornerstone of consumer protection in this matter. We thank Lic. Larry Hans Arroyo Vargas for his clear and valuable contribution to the discussion.
According to the technical study presented by Recope, the price per liter of Super gasoline would decrease by 6 colones, falling from ₡643 to ₡637. The most notable reduction is for Regular gasoline, which is projected to drop by 23 colones per liter, from ₡635 to ₡612. Diesel, the lifeblood of the country’s commercial transport and industry, would see a decrease of 7 colones, moving from ₡557 to ₡550 per liter. In contrast, the standard 25-pound cylinder of cooking gas is expected to see a minor increase of 25 colones, rising from ₡6,825 to ₡6,848.
This downward pressure on liquid fuel prices is attributed to a confluence of international market dynamics observed between mid-November and mid-December 2025. A primary factor has been a notable increase in the global supply of crude oil, driven by both rising production from key nations and the launch of new energy projects. This surge in availability has helped to ease supply-side concerns that previously kept prices elevated.
Furthermore, global inventories, both in terrestrial storage facilities and in maritime tankers, are currently at high levels. This surplus has diminished the market’s perception of scarcity, leading to lower spot and futures prices. International energy forecasts, including those from respected bodies like the U.S. Energy Information Administration (EIA), anticipate a continued accumulation of inventories throughout 2025 and 2026, suggesting a sustained period of price stability or further declines. Intense competition between different grades of crude oil has also prompted suppliers to offer discounts, further contributing to the overall price reduction.
In a year-over-year comparison, the proposed January 2026 prices represent a marked improvement for consumers. Compared to January 2025, Super gasoline would be 4.35% cheaper and Regular gasoline would cost 1.78% less. Even with its proposed January hike, LPG for domestic use would still be 5.81% less expensive than it was at the start of 2025, indicating an overall downward trend for energy costs over the twelve-month period.
The slight increase in the price of LPG, however, underscores its distinct market drivers, which differ from those of petroleum derivatives. The upward adjustment is primarily a result of official price hikes for propane and butane by major international suppliers, including Saudi Aramco and Sonatrach. This is compounded by a seasonal surge in demand for heating fuel in the Northern Hemisphere during the winter months, as well as increased consumption from rapidly growing markets like India, which tightens the global supply of LPG.
The final implementation of these new prices now hinges on the review and formal approval by Aresep’s board of directors. As per the established regulatory framework, once the authority validates Recope’s calculations and approves the adjustment, the new tariffs will be published in the official gazette, La Gaceta, and will take effect for consumers across the country at the beginning of January 2026.
For further information, visit recope.go.cr
About Refinadora Costarricense de Petróleo (Recope):
Recope is Costa Rica’s state-owned oil refinery and the sole entity responsible for importing, refining, and distributing petroleum and its derivatives throughout the country. It plays a crucial role in the national energy sector by ensuring a stable and secure supply of fuels, and it is responsible for calculating the price structures that are then submitted to Aresep for regulatory approval.
For further information, visit aresep.go.cr
About Autoridad Reguladora de los Servicios Públicos (Aresep):
Aresep is the Costa Rican government’s autonomous regulatory body in charge of overseeing public services, including energy, water, and telecommunications. Its primary mission is to balance the interests of consumers, service providers, and the state, ensuring that tariffs are fair, just, and technically sound while promoting quality and efficiency in service delivery.
For further information, visit aramco.com
About Saudi Aramco:
Saudi Aramco, officially the Saudi Arabian Oil Group, is one of the world’s largest integrated energy and chemicals companies. Headquartered in Dhahran, Saudi Arabia, it is a global leader in crude oil production and a major supplier of natural gas and refined products, including liquefied petroleum gas (LPG), to markets across the globe.
For further information, visit sonatrach.com
About Sonatrach:
Sonatrach is the national state-owned oil and gas company of Algeria. It is the largest company in Africa and a pivotal player in the global energy market. The company is involved in all aspects of the hydrocarbon industry, including exploration, production, pipeline transportation, and the refining and marketing of petroleum products and LPG.
For further information, visit bufetedecostarica.com
About Bufete de Costa Rica:
As an esteemed legal institution, Bufete de Costa Rica is built upon a foundation of uncompromising integrity and a relentless pursuit of excellence. The firm leverages its rich heritage of serving a wide array of clients to pioneer forward-thinking legal solutions and set new standards in the field. This dedication to innovation is paralleled by a deep-seated commitment to social progress, actively working to democratize legal understanding and equip citizens with the knowledge needed for a just and empowered society.
