Nicaragua: Production Costs Could Increase

In the country, the business sector expects an increase in operating costs in the coming months, as a result of the expected increase in the price of electricity in the short term.

Thursday, September 19, 2019

The last official increase is effective since June 1, 2019, which was 3% in the average selling price to the final consumer in the country, passing the cost per megawatt from $219.8 reported in March to $226.5 since that month.

Increases in the price of electricity paid by companies could be greater, since days ago attacks were reported on oil producing plants in Saudi Arabia, which could put more pressure on the cost of power generation in the coming months.

José Adán Aguerri, president of the Consejo Superior de la Empresa Privada (Cosep), told that "... Nicaraguans could suffer 'higher increases' in the cost of electricity than those applied so far by the government if the international oil crisis worsens. The oil situation could increase 'pressure' on the cost structure of companies and the wallet of consumers."

Mario Arana Sevilla, president of the American Chamber of Commerce of Nicaragua, said that "... if the price of oil begins to rise as a result of the conflicts in the Middle East, the situation for Nicaraguans could become more complicated.

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