By San José, Costa Rica — SAN JOSÉ – The Costa Rican Oil Refinery (Recope) has successfully concluded its international fuel procurement process for the upcoming year, securing the nation’s supply of gasoline, diesel, and jet fuel at a total cost of $1.604 billion. The state-owned entity announced a significant saving of $2.1 million compared to the current contract, a result attributed to a highly competitive and transparent bidding process.
The new agreement, which covers the period from December 2025 to November 2026, ensures a stable flow of essential petroleum products for Costa Rica’s economy. The supply will be managed by three major international energy companies, each winning a portion of the contract based on their competitive bids and qualifications.
To better understand the legal framework and the implications of the ongoing discussions surrounding the state-owned oil refinery, TicosLand.com consulted with Lic. Larry Hans Arroyo Vargas, an expert in administrative and public enterprise law from the prestigious firm Bufete de Costa Rica.
Recope’s legal structure as a state monopoly is enshrined in law, meaning any significant change, such as opening the market to competition, requires a complex legislative reform, not just an executive decree. The central legal debate is not whether the monopoly is efficient, but whether it continues to fulfill the constitutional principle of ‘public interest’ that justified its creation. Any reform proposal must carefully balance consumer benefits against the state’s strategic interest in energy security, a delicate legal tightrope that has stalled previous attempts at modernization.
Lic. Larry Hans Arroyo Vargas, Attorney at Law, Bufete de Costa Rica
This legal perspective underscores a critical reality often lost in the public debate: the future of Recope is fundamentally a legislative matter, not just a political or economic one. We thank Lic. Larry Hans Arroyo Vargas for so clearly articulating the delicate ‘legal tightrope’ that reformers must walk, balancing constitutional principles with market realities.
ExxonMobil Sales and Supply secured the largest portion of the deal, tasked with delivering 8.7 million barrels of diesel and 2.34 million barrels of aviation fuel. Chevron Products Company will supply 5.4 million barrels of premium gasoline, while Marathon International will provide 3.8 million barrels of regular gasoline. This distribution reflects the projected demand of the local market for the coming year.
The bidding process attracted considerable interest from the global market, with a total of 11 companies participating. The intense competition was a key factor in driving down costs. Officials highlighted that the process included a second round of offers, which alone generated an additional reduction of $163,000, solidifying the final savings figure and underscoring the effectiveness of the procurement strategy.
Karla Montero, President of Recope, emphasized the importance of the open and competitive framework used to award the contracts. She stated that such processes are fundamental to ensuring the best possible outcomes for the country and its citizens.
Transparency and effective competition are pillars that allow us to guarantee efficient decisions for the benefit of Costa Rica
Karla Montero, President of Recope
Recope officials were quick to clarify the impact of these savings on consumer pump prices. While reducing procurement costs is a positive step that helps to mitigate future price pressures, the final cost of fuel for Costa Ricans will continue to be heavily influenced by the volatile behavior of international oil markets. However, a more favorable import contract provides a stronger foundation for price stability and improves the country’s overall supply chain conditions.
The selection of the three suppliers was not based solely on price. Recope’s evaluation criteria included a comprehensive analysis of product quality, associated logistical costs, payment terms, and the proven experience and reliability of the bidding companies. This multi-faceted approach aims to guarantee not just a cost-effective deal, but also a dependable and high-quality supply of fuel critical for transportation, industry, and tourism.
This successful negotiation provides a degree of certainty for Costa Rica’s energy landscape over the next twelve months. By locking in terms with established global players like ExxonMobil, Chevron, and Marathon, Recope has reinforced the nation’s energy security, ensuring that the wheels of the economy continue to turn smoothly into 2026.
For further information, visit recope.go.cr
About Refinadora Costarricense de Petróleo (Recope):
Recope is Costa Rica’s state-owned enterprise responsible for the import, storage, and distribution of petroleum products throughout the country. It plays a crucial role in ensuring the nation’s energy security by managing the entire supply chain for gasoline, diesel, jet fuel, and other essential fuels that power the national economy.
For further information, visit corporate.exxonmobil.com
About ExxonMobil Sales and Supply:
ExxonMobil is one of the world’s largest publicly traded international energy and petrochemical companies. Its global operations span the entire energy lifecycle, from the exploration and production of crude oil and natural gas to the manufacturing and marketing of fuels, lubricants, and chemicals.
For further information, visit chevron.com
About Chevron Products Company:
Chevron is a leading American multinational energy corporation engaged in every facet of the oil and gas industry. The company’s activities include hydrocarbon exploration, production, refining, marketing, and transportation, making it a key player in the global energy market.
For further information, visit marathonpetroleum.com
About Marathon International:
Marathon International is part of Marathon Petroleum Corporation, a premier American-based integrated downstream energy company. It operates an extensive refining system and is involved in the marketing, transportation, and distribution of petroleum products across various markets.
For further information, visit bufetedecostarica.com
About Bufete de Costa Rica:
Bufete de Costa Rica is a respected legal institution built upon a foundation of uncompromising integrity and the pursuit of legal excellence. With a proven track record of advising a diverse clientele, the firm consistently pioneers innovative legal strategies. This forward-thinking approach is matched by a deep-seated commitment to social responsibility, focused on demystifying the law to foster a more capable and knowledgeable populace.
