The price of diesel, 25.4% above the Central American average, puts Costa Rican farmers at a disadvantage.
Friday, October 16, 2015
From a statement issued by the National Chamber of Agriculture and Agribusiness (CNAA):
Tico diesel prices are 25.4% more than the average in Central America
• Cost affects competitiveness of the agricultural sector
• Producers have to compete at a disadvantage because most agricultural machinery uses this type of fuel
San Jose, Costa Rica, October 16, 2015. The price of diesel in Costa Rica, in the month of September, exceeded by 25.4% the cost in the rest of the Central American countries, a factor which puts Tico farmers at a disadvantage because most of the machinery used in field work uses this type of fuel.
According to figures from the National Chamber of Agriculture and Agribusiness (CNAA) the average price of diesel in Costa Rica in the month of September was $0.84 per liter, while in the other Central American countries, the average cost per liter was $0.67.
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Price per gallon of regular gasoline: Costa Rica $3.50, Nicaragua $3.36, Honduras $3.24, El Salvador $2.82, Guatemala $2.82 and Panama $2.63.
From the Ministry of Economy of El Salvador report:
The increase in fuel prices for this fortnight is because of production factors, according to the latest report provided by the IEA, gasoline reserves showed a weekly reduction of 1.5 million barrels, also distillates such as diesel decreased by 1.4 million barrels per week; these inventory reductions affect the tendency of prices to rise, because there are fewer gasoline and diesel reserves to supply the existing demand in the hydrocarbon market, which generates this effect in the international prices of oil derivatives.
While in Nicaragua and El Salvador the minimum monthly cost of farm labor is just over $100, in Guatemala it is $345 and in Costa Rica it is over $460.
In a region where agricultural production is relatively the same in most countries, production costs are very different, resulting in very different levels of productivity that ultimately benefit some more than others.
In Central America, El Salvador has the lowest prices for regular gasoline and ranks second in the prices of special gas and diesel.
From a press release issued by the Ministry of Economy in El Salvador:
In Central America, El Salvador is positioned on top for having the lowest prices on regular gasoline, and in second place for the lowest prices on special gasoline and diesel.
Complaints have been made about loss of competitiveness due to fuel costs being the highest in the region.
A study by the National Chamber of Agriculture and AgroIndustry (CNAA) states that in June the price of a gallon of diesel cost, on average, $4.71 in Costa Rica, $3.76 in Panama, $4.02 in Guatemala , $4.44 in Nicaragua , $4.15 in El Salvador , and $4.20 in Honduras.
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