Industrialists in Costa Rica are opposed to the appeal lodged by deputies against the presidential decree that prevented the rise of 72% in the price of LP gas and 35% in bunker fuel.
Friday, August 19, 2016
From a statement issued by the Chamber of Industries of Costa Rica:
The Chamber of Industries of Costa Rica said that nullifying the presidential decree on Sector Policy, as several Deputies want to do, will affect employment.Last week, deputy Luis Alberto Vasquez Castro and other lawmakers presented an appeal to the Constitutional Court against the decree by President Luis Guillermo Solis of January, a decree that prevented the ARESEP from changing the methodology of fuel prices.This presidential decree, put an end to the disproportionate increase in the price of Liquefied Petroleum Gas (LPG), 72%, and bunker fuel, 35%, which are key materials for the industrial sector.
Enrique Egloff, President of the CICR said it is important that deputies are aware of the implications of their action because with this measure, they would be directly affecting the employment of Costa Ricans by "making domestic industry no longer competitive, many large companies, medium-sized, but mainly small ones will disappear, leaving not only leaving many Costa Ricans unemployed; but also causing those same companies to cease to consume fuel supplied by RECOPE and electricity by the ICE," said Egloff.
¿Busca soluciones de inteligencia comercial para su empresa?
The Constitutional Chamber has rejected the appeal filed by deputies against the presidential decree that prevented a 72% increase in LP gas prices and 35% in bunker fuel.
From a statement issued by the Chamber of Industry:
"The Chamber of Industries of Costa Rica has welcomed the rejection by the Constitutional Chamber of the case of unconstitutionality brought by the Deputy of the PUSC Luis Vásquez and other Deputies against the Sectoral Policy of the Executive Power regarding the prices of industrial fuels, corresponding to Executive Decree 39437 of the MINAE, signed in January of last year.This defeats once more the specter of an excessive and disproportionate increase in fuel prices which our industry uses to compete in the world and with the world.
Concern over the serious impact on the productive sector of a 72% increase in gas prices has faded, while accusations of inefficiency and a monopolistic state oil company still persist.
Although the ARESEP is expecting to submit to a public hearing the new pricing methodology which would eliminate the subsidy from the cost of Liquefied Petroleum Gas (LPG), asphalt and bunker fuel, and increase the cost of a 25 pound cylinder from ¢ 6,410 to ¢8,470, the Government of the Republic has decreed a new sector policy for prices, in order to avoid the increases proposed by the regulator.
Increases up to 72% are expected in the price of gas and 35% in bunker fuel if a proposal put forward by ARESEP to reduce the price of gasoline and diesel by 2% is successful.
From a statement issued by the Chamber of Industries of Costa Rica:
Monday December 7, 2015. While industrial companies are making significant efforts to increase production and create jobs, the ARESEP has announced that in order to reduce gasoline and diesel by 2% it will increase the cost of bunker fuel by 35% and by the cost of Petroleum liquid gas 72%.
The state fuel company Recope will begin importing natural gas within 6 months, to sell it to industrial clients.
According to Jorge Rojas, general manager of Recope, research is still being conducted over how many tons of gas will be brought into the country and at what prices it will be marketed locally.