Guatemala ends fuel subsidy as funds run out

Guatemala's Ministry of Energy and Mines (MEM) has announced the termination of the fuel subsidy, effective July 2, 2026. The temporary measure, which provided financial relief to consumers, concluded due to the accelerated use of the Q2 billion allocated by Congress for this purpose.

Erwin Barrios, the Vice Minister of Energy and Mines overseeing hydrocarbons, explained that the subsidy will cease at midnight on July 2 for fuels leaving importadoras destined for the distribution network. For retail outlets serving end consumers, the benefit will continue only until their existing subsidized fuel inventories are depleted. This notification was officially communicated to fuel importers and service stations on July 2 through an official notice from the MEM's Directorate General of Hydrocarbons.

“

The subsidy will cease to apply this July 2 at 24 hours for fuels that leave the importadoras destined for the distribution network.

The temporary subsidy was implemented to mitigate the effects of increased international fuel prices, largely attributed to the conflict in the Middle East. It provided Q5 per gallon for gasoline and Q8 per gallon for diesel. Barrios noted that international fuel prices have since shown a downward trend, aligning with the subsidy's conclusion as the designated funds have been exhausted.

Congress approved Q2 billion for the subsidy under Decree 11-2026, with the expectation that it would cover three months or until the funds ran out. The subsidy began on April 28. While the three-month period would have ended in late July, the weekly consumption rate indicated that the funds would cover approximately 10 weeks, reaching exhaustion around July 6. As of July 1, the Ministry of Finance reported that 79% of the subsidy funds had been utilized, with an average weekly expenditure of Q197.5 million.

“

The temporary support of Q5 per gallon for gasolines and Q8 per gallon for diesel fulfilled the objective of providing relief to Guatemalans during the period when international fuel prices increased as a consequence of the conflict in the Middle East.