Nicaragua paid millions extra for oil amid opaque pricing

Nicaragua paid a substantial premium for oil in the first two months of 2026, costing the country an additional $26.9 million compared to international market prices. During January and February, the nation consumed oil at a price approximately 40% higher than what was available globally.

The government has remained silent on who benefited from this significant price difference. Official data from the Central Bank of Nicaragua (BCN) reveals that nearly 1.25 million barrels of crude were purchased in the first quarter of 2026 at an average price of $93.5 per barrel. However, the international benchmark WTI crude oil traded between $60 and $91 per barrel during the same period.

This discrepancy translates to a per-barrel overcharge of $22.9 in January and $27.2 in February. While March saw a reduced overcharge of $14.4 per barrel, partly due to market volatility from the Iran conflict, the initial months' figures raise serious questions. Financial experts note that while CIF prices (including shipping and insurance) are naturally higher than FOB (free on board) prices, the gap observed in Nicaragua far exceeds typical differences, which usually remain below 9% according to BCN's own trade balance data. Retired hydrocarbon expert Carlos suggested that increased shipping fuel costs and recovery efforts by shipping companies post-pandemic, along with rising insurance costs due to regional tensions, could explain some price increases, but not the magnitude of the initial overcharge.