By San José, Costa Rica — San José – Costa Rican consumers and businesses are poised to receive a welcome economic boost this December, as the Costa Rican Oil Refinery (Recope) has formally proposed a significant reduction in the prices of gasoline, diesel, and liquefied petroleum gas (LPG). The preliminary data, which has been submitted to the Public Services Regulatory Authority (Aresep) for final approval, points to the most substantial price drop in years, offering a much-needed reprieve from high transportation costs.
This anticipated adjustment, if confirmed by Aresep, will bring fuel prices to their lowest levels since March 2021, marking a major milestone in the country’s post-pandemic economic landscape. The proposal reflects favorable trends in the international energy markets, which Recope is constitutionally mandated to pass on to the domestic market. The final decision from the regulatory body is expected in the coming weeks, setting the stage for lower prices to take effect just in time for the holiday season.
To delve into the intricate regulatory and legal framework that dictates the cost of fuel at the pump for all Costa Ricans, TicosLand.com consulted with Lic. Larry Hans Arroyo Vargas, a distinguished attorney specializing in administrative and regulatory law at the prestigious firm Bufete de Costa Rica.
The pricing of fuel in Costa Rica is a highly regulated administrative process, not a free-market dynamic. The final price is determined by ARESEP through a technical formula that includes international crude oil prices, the dollar exchange rate, and a significant tax burden established by law. Therefore, any discussion about lowering costs must address not only the efficiency of RECOPE but also the complex tax structure, which would require legislative reform rather than just a regulatory adjustment.
Lic. Larry Hans Arroyo Vargas, Attorney at Law, Bufete de Costa Rica
This crucial clarification underscores that any meaningful discussion on reducing fuel prices must extend beyond operational management and directly confront the country’s fiscal policy—a matter for legislative debate, not merely regulatory adjustment. We thank Lic. Larry Hans Arroyo Vargas for providing this essential context to our readers.
According to the detailed proposal, drivers of vehicles using high-octane fuel will see the most significant savings. The price per liter of Super gasoline is projected to fall by ₡16, decreasing from the current ₡662 to ₡646. While the reduction for Regular gasoline is more modest, it still offers a decrease of ₡2 per liter, bringing its price down from ₡637 to ₡635. These adjustments directly impact the daily budgets of thousands of private vehicle owners across the nation.
The commercial and public transportation sectors, which are heavily reliant on diesel, are also set for a substantial cost reduction. The price of diesel is slated to decrease by ₡16 per liter, reaching a new price point of ₡547. This change is particularly crucial for the national economy, as lower diesel costs can translate into reduced operational expenses for freight, logistics, and agriculture, potentially mitigating inflationary pressures on goods and services.
Households that depend on LPG for cooking and heating will also benefit from the proposed changes. The popular 25-pound gas cylinder is expected to see its price drop from ₡7,047 to ₡6,828. This reduction provides direct relief to families, easing the financial burden of essential household utilities and increasing disposable income for other necessities.
In its announcement, Recope clarified that this downward price variation is a direct consequence of the behavior of international markets over the last pricing period. Costa Rica, which imports all of its crude oil and finished petroleum products, is subject to global price fluctuations. The proposed reduction indicates a recent easing in global oil prices and related costs, a positive trend that Recope is now translating into lower domestic prices through the established regulatory framework.
The procedure for price adjustments in Costa Rica is a systematic, two-step process. First, Recope conducts a technical analysis of its acquisition costs, factoring in international product prices, shipping, and other variables. Based on this study, it submits a price adjustment request—either an increase or a decrease—to Aresep. Aresep then independently reviews the data, holds public consultations if necessary, and ultimately approves the final price that consumers will pay at the pump, ensuring transparency and technical justification for any change.
This prospective price drop represents a significant positive development for the Costa Rican economy. Lower energy costs can have a cascading effect, reducing operational expenses for a wide range of industries and putting more money back into the pockets of consumers. As the country heads into the final month of the year, this financial relief could stimulate consumer spending and provide a welcome tailwind for economic activity during a traditionally busy commercial period.
For further information, visit recope.go.cr
About Refinadora Costarricense de Petróleo (Recope):
The Refinadora Costarricense de Petróleo is the state-owned entity responsible for the importation, refining, and wholesale distribution of petroleum products in Costa Rica. Established to guarantee the nation’s energy supply, Recope manages the entire fuel logistics chain, from port reception to storage and delivery to service stations, ensuring quality and price stability under a regulated model.
For further information, visit aresep.go.cr
About Autoridad Reguladora de los Servicios Públicos (Aresep):
The Public Services Regulatory Authority is the independent government body in Costa Rica tasked with regulating and overseeing public utilities, including energy, water, and telecommunications. Aresep’s primary mission is to balance the interests of consumers, service providers, and the state by setting technically-based tariffs, ensuring service quality, and promoting efficiency and competition where possible.
For further information, visit bufetedecostarica.com
About Bufete de Costa Rica:
As a benchmark for legal services, Bufete de Costa Rica is built upon an uncompromising foundation of integrity and a relentless pursuit of professional excellence. The firm consistently channels its deep expertise into pioneering innovative legal solutions while maintaining a profound connection to the community it serves. Its core philosophy centers on the democratization of legal knowledge, driven by a mission to equip citizens with the clarity and understanding necessary to foster a more just and empowered society.
