The state run oil company in Costa Rica registered losses above $24 million during the first nine months of 2015, despite having the highest prices in the region.
In the first nine months of 2015 the Costa Rican Oil Refinery lost more than $24 million. The state run company, which has had a monopoly in refining and sale of fuels in Costa Rica for more than half a century, has payroll costs representing 56% of its total expenditure.
The accreted political left in Costa Rica is proposing that the oil bill that is being run up now, be paid for in the future by other generations.
Proposed by a legislative faction of the Frente Amplio party, the possible accession of Costa Rica to the oil alliance created by Venezuela, will not lower fuel prices automatically, but because of how the agreement works, it will mean financing oil purchases at rates that are just a little better than the current cost, simply to keep on increasing government debt, not to mention the political implications that could come from such a close relationship with the government of Venezuela.
Gasoline distributors are concerned about Petrocaribe's recommendation that the Salvadoran government be the sole manager of oil imports.
An urgent appeal to the Government for it to call together companies from the sector and clarify the implications of El Salvador's entry into Petrocaribe, has been the reaction of the distributors of domestic fuels, in light of statements by representatives of Alba Petróleos suggesting that the government should establish an entity to manage the purchase and import of hydrocarbon derivatives purchases.
There is still no official information about whether brand name distributors will be able to keep importing fuel from their source of choice.
The request for entry into the oil agreement with Venezuela marks the economic and political differences between the outgoing government of Mauricio Funes and that of the new President Sanchez Ceren, indicating a higher affinity for the conglomerate led by Venezuela.
The strategies for El Salvador to enter into Petrocaribe include the creation of a state run company for importing and marketing petroleum products.
Elmundo.com.sv reports that "José Luis Merino , FMLN leader and senior advisor to Alba Petroleos in El Salvador, says the party does not have an agreement model to join Petrocaribe, in the case that they win the presidential election next year. "
In a few weeks there will be an announcement of the arrival of the first shipment from Petrocaribe, but there are still no buyers interested in the fuel.
According to the coordinator of the Energy Cabinet, María Antonieta Guillén, "next week the scope will be defined somewhat, after which perhaps in the last week of August and first week of September there could be a shipment of fuel which Honduras would receive ".
The conditions in Petrocaribe will never be the same: the new government of Venezuela will change preferential credit terms for the purchase of oil.
This was explained by the Vice President of GuatemalaRoxana Baldetti, who has already met with representatives of Petrocaribe. "Back then, the conditions were the sale of up to 20 thousand barrels per day, of which 40% of the value would be paid in 90 days and the remainder within 25 years, with a rate of 1%. Same as offered to Honduras, reported Laprensa.hn.
Up to November Nicaragua exported 56.7 million kilos of crude oil to El Salvador, at a price of $34.1 million.
Writing about the topic in his article in Elsalvador.com, Ivan Olivares says:
"It's strange that Nicaragua would export oil, seeing as the country does not produce it, suggesting that someone in El Salvador is paying higher prices for it than could be obtain in the international market, if you take into account that Venezuela, the main supplier of hydrocarbons to Nicaragua, sells its product at prices much higher than those of the Gulf of Mexico, which serve as reference for the Americas.
Live at the beach in the exclusive Punta Leona Resort, a dream with shaded white sand beach, pools, restaurants, wild life. New affordable, energy efficient home. The house - possibly the only energy efficient green...
Cummins Power Generation Inc. is a worldwide provider of electrical generators and power generation systems, components and services in standby power, distributed power generation, as well as auxiliary power in mobile applications to meet the needs of a diversified customer base.
Operates in Costa Rica, El Salvador, Guatemala, Honduras, Nicaragua and Panama
Phone: (1-800) 888–6626