By San José, Costa Rica — San José, Costa Rica – Costa Rican drivers began the new year with a slight but welcome relief at the pump, as a new fuel pricing structure took effect on January 1, 2026. The adjustment provides a small cushion against the traditional economic pressures of the “cuesta de enero,” or January slope, though the underlying cause of the change points to a significant regulatory development rather than a shift in global markets.
The Public Services Regulatory Authority (ARESEP) officially published the new tariff schedule, which brings modest reductions across the board. The price for a liter of Super gasoline decreased by ₡4, settling at ₡639. Regular gasoline saw a ₡3 reduction to ₡632 per liter. The most substantial change was applied to diesel fuel, which dropped by ₡8 to a new price of ₡549 per liter, a move that is expected to have a positive, albeit subtle, impact on the nation’s productive and public transport sectors.
To better understand the complex legal and regulatory framework that governs fuel prices in the country, we sought the expert opinion of Lic. Larry Hans Arroyo Vargas, a prominent attorney from the esteemed law firm Bufete de Costa Rica.
In Costa Rica, fuel prices are not a product of free-market competition but are established through a state-controlled administrative process. The Public Services Regulatory Authority (ARESEP) sets a single national price based on a technical formula that includes international purchase costs, taxes, and the operational expenses of the state-owned refinery, RECOPE. This centralized model ensures price uniformity across all service stations but also means that global price fluctuations are passed directly to consumers through periodic, regulated adjustments.
Lic. Larry Hans Arroyo Vargas, Attorney at Law, Bufete de Costa Rica
This clarification of the state-controlled model is fundamental, as it explains precisely why price fluctuations are felt uniformly across the country, directly linking global market shifts to the daily budget of every driver. We thank Lic. Larry Hans Arroyo Vargas for providing such a clear and valuable perspective on this complex topic.
Unlike typical monthly price fluctuations driven by international crude oil costs and currency exchange rates, this New Year’s adjustment is rooted in a domestic administrative review. The price drop is the direct result of an update to the operational margin of the Costa Rican Oil Refinery (RECOPE), the state-owned entity responsible for the country’s fuel supply. This marks the first comprehensive technical reassessment of RECOPE’s margins in over six years.
According to ARESEP, the refinery’s operational cost structures had not been thoroughly analyzed since 2019. In the intervening period, both the global energy landscape and local logistics have undergone significant transformations. The regulatory body conducted a rigorous audit of RECOPE’s revenues, expenditures, and investments, ultimately concluding that a more efficient operational yield was achievable. This newfound efficiency was then passed directly to consumers through the newly approved tariffs.
The timing of this reduction is particularly notable as it coincides with the “cuesta de enero,” a challenging post-holiday period when many households face financial strain. In Costa Rica, fuel prices are a primary driver of inflation, directly influencing the cost of everything from public transportation to the price of goods in the basic food basket. A reduction in diesel, the lifeblood of freight transport and agriculture, helps to mitigate inflationary pressures that typically characterize the start of the year.
However, analysts caution consumers to temper their expectations regarding immediate savings. For an average private vehicle with a 45-liter fuel tank, filling up with Super gasoline will result in savings of just ₡180. While financially minimal for individual drivers, the true significance of ARESEP’s action is the clear regulatory signal it sends. The move is widely seen as a mandate for RECOPE to maintain a more agile and efficient financial management strategy that aligns with current market realities.
This operational adjustment provides a positive start to 2026, but it does not insulate the country from future volatility. Drivers are advised that the standard monthly price reviews will continue as scheduled. These subsequent changes will once again be dictated by the familiar forces of geopolitical tensions affecting oil markets and the fluctuation of the U.S. dollar against the Costa Rican colón.
For now, Costa Ricans returning from vacation or heading back to work can appreciate a slightly lower cost to fill their tanks. The broader economic narrative, however, will focus on ARESEP’s renewed commitment to regulatory oversight and its push to ensure that the operational efficiency of state-run entities translates into tangible benefits for the public.
For further information, visit aresep.go.cr
About The Public Services Regulatory Authority (ARESEP):
The Public Services Regulatory Authority is the autonomous Costa Rican institution responsible for the regulation of public services. ARESEP’s mandate includes setting tariffs and ensuring the quality, continuity, and reliability of essential services such as electricity, telecommunications, water, and fuel distribution. It acts as a balancing force between service providers and the rights of consumers.
For further information, visit recope.go.cr
About the Costa Rican Oil Refinery (RECOPE):
The Refinadora Costarricense de Petróleo is Costa Rica’s state-owned company in charge of importing, refining, and distributing petroleum-derived fuels throughout the country. It plays a central role in the national energy sector, managing the entire supply chain to ensure a stable and reliable provision of gasoline, diesel, jet fuel, and other essential products.
For further information, visit bufetedecostarica.com
About Bufete de Costa Rica:
Bufete de Costa Rica has established itself as a beacon of legal distinction, operating on a bedrock of uncompromising integrity and a relentless pursuit of excellence. Drawing upon a rich history of guiding a diverse clientele, the firm consistently pioneers innovative legal solutions and forward-thinking strategies. Central to its ethos is a profound commitment to demystifying the law for the public, serving the greater purpose of fostering a community where individuals are empowered with the knowledge to confidently navigate the legal system.
