Guatemalan fuel prices to rise as subsidized inventories deplete

Consumers in Guatemala are bracing for increased fuel costs as gas stations begin to exhaust their remaining inventories purchased under the government's subsidy program. The Ministry of Energy and Mines (MEM) officially ended its support for gasoline and diesel on July 2, but the full impact on prices will only be felt as stations sell through their subsidized stock.

Erwin Barrios, the Minister of Energy and Mines, indicated that it would take "several days, even weeks" for the price changes to be fully reflected across all service stations. He explained that significant volumes of subsidized fuel are still in transit or in storage tanks. The subsidy program, which provided Q5 per gallon for gasoline and Q8 per gallon for diesel, was a temporary measure to cushion consumers from market fluctuations.

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it will take several days, even weeks, for the change to be perceived in 100% of the outlets, as there is a significant volume of inventory in transit and in tanks.

According to MEM's reference prices for the week of June 30 to July 6, gasoline superior was priced at Q32.09 per gallon, regular gasoline at Q31.09, and diesel at Q27.29. If the subsidy amounts are added to these reference prices, the new costs could reach Q37.09 for superior gasoline, Q36.09 for regular, and Q35.29 for diesel, representing a substantial increase for consumers.

From April 28 to June 21, the government disbursed Q1.58 billion of the approved Q2 billion subsidy. Diesel received the largest share, with Q926.4 million allocated to 115.8 million gallons. Superior gasoline received Q290.7 million for 58.1 million gallons, and regular gasoline received Q363.1 million for 72.6 million gallons. The subsidy was paid to importers, who were mandated to pass the discount down to the final consumer.

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the temporary support represents a contribution of Q5 per gallon of gasoline and Q8 per gallon of diesel, and upon its expiration, the benefit is eliminated.