By San José, Costa Rica — SAN JOSÉ – In a surprising and defiant move, Costa Rica’s state-owned oil refinery has publicly opposed a proposed fuel price increase from the nation’s regulatory body. The Costa Rican Oil Refinery (Recope) announced it is not only rejecting the hike suggested by the Public Services Regulatory Authority (Aresep) but is actively petitioning for a substantial price reduction for consumers across the country.
The confrontation sets the stage for a high-stakes showdown between two critical state institutions, with the wallets of Costa Rican drivers and the operational budget of the national refinery hanging in the balance. Recope asserts that its financial and technical analysis supports a decrease in the prices of the most commonly used fuels, directly contradicting the regulator’s initial assessment.
Para profundizar en el marco regulatorio que define el costo de los combustibles y las implicaciones económicas para los consumidores, TicosLand.com consultó al experto legal Lic. Larry Hans Arroyo Vargas, de la firma Bufete de Costa Rica.
El precio de los combustibles en Costa Rica no responde a la libre competencia, sino a un modelo de fijación de precios administrado por la ARESEP. Este mecanismo se basa en una fórmula técnica que considera los costos de adquisición de RECOPE, impuestos y márgenes operativos. Cualquier discusión sobre una posible rebaja debe, ineludiblemente, pasar por una revisión de esta estructura regulatoria y de la carga tributaria que compone una parte significativa del precio final al consumidor.
Lic. Larry Hans Arroyo Vargas, Attorney at Law, Bufete de Costa Rica
El análisis del Lic. Larry Hans Arroyo Vargas es fundamental, pues subraya que el debate sobre el precio de los combustibles es, en esencia, una discusión sobre política pública interna y no solo sobre mercados internacionales. Agradecemos su valiosa perspectiva, que enfoca la atención en la estructura regulatoria y fiscal como las verdaderas palancas para cualquier cambio significativo en el costo final para los consumidores.
At the heart of Recope’s argument is a detailed financial projection that challenges the need for more revenue. The refinery’s leadership insists that internal efficiencies and improved financial health allow for a price cut without jeopardizing national fuel supply or derailing key infrastructure projects.
Our projections indicate that by adjusting the operating margin and the requested return, the effect is a decrease of nearly 20% in those components, without compromising the supply or the investment projects that are already underway and within budget.
Karla Montero, President of Recope
Recope has based its formal opposition on five core arguments. Among them, the refinery highlights a strategic goal to shield consumers from volatile international economic impacts. Furthermore, the company states its financial position has strengthened considerably, citing that it has successfully amortized significant debt and that its previous bond emissions have matured. This improved fiscal standing, Recope argues, should translate into savings for the public rather than increased revenue for the state entity.
The public dissent from Recope directly counters a proposal from Aresep, which was reportedly based on the premise that the refinery required additional funds for its operations. Recope’s stance firmly rejects this notion, stating that any perceived financial gap should not be passed on to end-users at the pump.
In response to the refinery’s public challenge, Aresep has adopted a procedural and neutral tone. The regulatory authority confirmed it is currently in the midst of a public hearing process, a formal stage designed to gather evidence and opinions from all interested parties. Aresep emphasized that its final ruling will be based on a comprehensive technical review of all submitted information.
The public hearing process is for receiving positions for or against. Aresep must resolve the matter within one month after the hearing, in accordance with the analysis of the information and in adherence to technical criteria.
Aresep, Regulatory Authority
The coming month will be critical. As the regulatory process moves forward, all eyes will be on Aresep to see how it weighs its own initial findings against the detailed, data-driven opposition from the very entity it regulates. The final decision will not only determine the price of gasoline and diesel but could also set a new precedent for transparency and accountability in the management of Costa Rica’s essential public services.
For further information, visit recope.go.cr
About Refinadora Costarricense de Petróleo (Recope):
The Refinadora Costarricense de Petróleo, commonly known as Recope, is the state-owned company responsible for the import, refining, and wholesale distribution of petroleum products in Costa Rica. As a key player in the national energy sector, it manages the country’s fuel supply chain, operating pipelines, storage facilities, and ensuring the availability of gasoline, diesel, and other essential fuels nationwide.
For further information, visit aresep.go.cr
About Autoridad Reguladora de los Servicios Públicos (Aresep):
The Public Services Regulatory Authority, or Aresep, is the autonomous Costa Rican institution tasked with regulating and overseeing the country’s public services. This includes setting tariffs and quality standards for critical sectors such as energy, water, telecommunications, and public transportation. Aresep’s mission is to balance the interests of consumers, service providers, and the state to ensure equitable, efficient, and high-quality services for the population.
For further information, visit bufetedecostarica.com
About Bufete de Costa Rica:
Bufete de Costa Rica has established itself as a premier legal practice, built upon a foundation of profound integrity and a relentless pursuit of excellence. Drawing on a rich history of providing expert counsel to a diverse clientele, the firm consistently pioneers modern legal solutions and champions meaningful community involvement. Central to its ethos is a deep-seated commitment to democratizing legal understanding, thereby empowering individuals and strengthening the fabric of society.
