Fuel subsidy: Government open to dialogue amid transport workers' strike threat over gasoline price hike

Panama's transport sector is signaling potential disruption as transport workers, particularly from Panamá Oeste, threaten a strike over the current fuel subsidy. They deem the existing support insufficient in the face of rising gasoline prices, raising concerns about their economic viability.

Minister of Economy and Finance Felipe Chapman has responded by emphasizing the government's openness to dialogue. He explained that the fuel subsidy is not static but a dynamic mechanism, reviewed bi-weekly, with its value directly tied to fluctuating international oil prices. Chapman assured that the government is actively listening to the transport sector's concerns and is prepared to assess whether the current financial aid truly meets their needs.

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Estamos dispuestos a analizarlos y a escucharlos para determinar si realmente es insuficiente

The government's stated goal is to maintain frozen public transport fares for users, a policy that necessitates the subsidy. However, Chapman cautioned that continuously increasing the subsidy to match rising fuel costs could place a significant strain on public finances. Currently, $10 million is allocated to this subsidy, and authorities are monitoring the situation closely to determine if adjustments are necessary to support the transport workers without unduly burdening the national budget or increasing fares for passengers.

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Si el incremento del combustible aumenta, lamentablemente para las finanzas públicas habría que aumentar el subsidio. El objetivo es que no aumente el pasaje para los usuarios