Guatemala government proposes diesel price cap after fuel costs trigger protests

Guatemala's government will ask Congress to cap the price of diesel at 39 quetzales, or $5.11 per gallon, after rising fuel costs triggered protests across the country.

President Bernardo Arévalo de León said Monday that he had sent the proposal to the legislature, where his government does not hold a majority. He hopes lawmakers will approve the measure so it can remain in effect for the rest of the year.

Diesel currently costs slightly more than $6 per gallon, according to sources cited in the report. Arévalo said the state would pay importers the difference if fuel prices rose above the proposed ceiling. “We believe it is a good proposal because it protects the final consumer,” he said.

The plan follows an unsuccessful proposal for a new fuel subsidy. Congress approved a subsidy two months ago, but various sectors of society say it has not improved the situation. Fuel prices have risen by nearly 50 percent over the past six months.

Transport workers have staged demonstrations demanding lower gasoline and diesel prices and blocked several points around the country last week. The Indigenous organization 48 Cantons of Totonicapán also scheduled a peaceful march for Tuesday to protest the fuel increases before the government and Congress.

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We believe it is a good proposal because it protects the final consumer.