Guatemala's MEM Secures Q2 Billion for Fuel Subsidies

The Guatemalan Ministry of Energy and Mines (MEM) has announced it has the necessary budget to continue subsidizing fuel prices, a measure that has been in effect since April 28. This move aims to alleviate the financial burden on consumers by reducing the price of diesel by Q8 per gallon and gasoline by Q5 per gallon. The subsidy is set to last for three months.

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the transfers are already in the MEM and that we have the budget for the amount in question.

According to Vice Minister Erwin Barrios, the funds, totaling Q2.26 billion, have been allocated, with Q2 billion specifically earmarked for the fuel subsidy. This financial relief is being funded through budget reductions in other government ministries, including Defense, Agriculture, and Communications. The Ministry of Finance is responsible for reallocating an additional Q1.19 billion, with plans to utilize funds that are not expected to be spent within the current fiscal year.

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the reduction must be applied to fuels from the moment they are dispatched by importers, and such a discount must be reflected in the invoices of the chain until the consumer.

The MEM will be responsible for reimbursing fuel importers based on verified documentation of the price reductions passed on to consumers. Payments to importers are scheduled to be made weekly, though the initial process may take longer to establish. This initiative underscores the government's commitment to stabilizing fuel costs amidst economic pressures, ensuring that the benefits reach the end consumer through the entire supply chain.

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the weekly payments are planned to be made.