El Salvador To Eliminate Gas Subsidy

The subsidy will only be available for families living under extreme poverty conditions.

Friday, January 15, 2010

Alex Segovia, Presidential Secretary, explained that this subsidy will be eliminated in the second half of the year.

"Segovia informed they have hired international technical assistance and are working on a series of proposals to focus the subsidy on the poorer population", reported Elsalvador.com.

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Costa Rica Subsidizes Asphalt and Gas

December 2014

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."

Subsidy Policy in El Salvador

July 2013

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%.

El Salvador Will Change Gas Subsidy

April 2010

In El Salvador, the cylinder of 25 pounds of gas costs $5.10; without the government’s subsidy it could cost up to $14.

From October 2010 onwards, the Government will limit the subsidy in order to benefit only low-income families. It will be applied via discounts in the electricity bill, but only to families consuming less than 99 kWh a month and those without electricity service.

LP Gas market may be opened up in El Salvador

August 2008

The Minister of the Economy confirmed that the measure would be taken if the companies that import and distribute the product cause a shortage (of supply) in the market and affect consumers.

For their part, the members of the Salvadoran Association of Liquefied Petroleum Gas Importers and Distributors (Asogas) confirmed that there will be a shortage in the propane gas market within two or three days because of the failure on the part of the Government to pay the subsidy.