According to prensalibre.com, "transport cooperatives expressed their concern about the suspension, as they maintain that their operating costs are high.
"Fuel prices may have dropped, but the rest of our raw materials have increased and that needs to be addressed now, we need to adjust the fares," said the head of the National Taxi Movement, Alan Vargas.
The government will subsidize 200.000 daily gallons of fuel to the country’s 26.000 authorized transportation agents.
After negotiating with transportation companies, the government agreed to pay for $0.35 of each gallon of regular fuel and $0.40 of each gallon of diesel. The measure will apply to taxis and inter-urban, inter-municipal and sea transportation companies.
In 1999, government spending on subsidies was $13 million, a figure which has multiplied 30 times, reaching $471 million in 2012.
In an event organized by the Salvadoran Chamber of Consulting Firms (Camsec) and the Union of MSMEs, union president, Jorge Daboub, revealed that while in 1999 the country spent $13 million on payments of subsidies, specifically for liquefied gas oil, by 2012 they had increased to $458 million, which represents an increase of 3523.1%.
The formulas that determine the prices of products sold by the monopoly which is the state run oil company contain factors that create subsidies for gas and asphalt consumers at the expense of gasoline and diesel consumers.
An article published in Nacion.com reports on the results of an investigation into the calculation of consumer prices of automotive fuel, which states that since August 2008 changes have been put into effect to the formulas determined by the Regulatory Authority for Public Services (ARESEP), harming "... consumers of diesel and gasoline, who pay more per liter than the asphalt companies and gas users who save millions from the lower prices."
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