In Central America, it is projected that the impact of the Covid-19 crisis on the business of retail sales of gasoline and oil products will be explained mainly by the expected drop in gasoline and diesel sales.
A recently released analysis of the fuel sector's regional distribution chain provides a comparison of the prices of gasoline, diesel, and LPG from 2002-2013.
By Mr. Raphael Vilagut-Vega:
Complete, detailed, timely and reliable statistics are essential for monitoring the energy situation in Central America which has not escaped from the energy crisis, both in terms of electricity and oil rates. This market study analyzes the behavior of prices from 2002 through to 2013 for consumer fuels in six Central American countries and compares the average of the first half of 2013 with different indicators for 60 countries in U.S. $/gallon. Sales Price U.S. $100.00 (U.S. dollars) or its equivalent in Euros at the current rate.
The company is conducting feasibility studies on the import and distribution of Liquefied Petroleum Gas in El Salvador and other Central American countries.
"It would be an important element if we managed to change the energy matrix of El Salvador," said José Luis Merino, Alba Petróleos advisor, who explained that the company (funded with capital from the municipality of El Salvador and the state of Venezuela) has had conversations with natural gas producing countries.
A pilot project is being prepared for the distribution and retail sale of liquefied petroleum gas, consumption of which increased by 19.5% between January and October of 2012.
"Giving up using wood and stoves in homes is helping to reduce the level of pollution in the country, but it has also allowed Liquefied Petroleum Gas (LPG) to gain ground as a product as a result of its use in household kitchens, eateries and restaurants", noted an article in Laprensa.com.ni.
The Superior Council of the Private Enterprise is questioning the supposed "benefits" and "efficiency" of the oil agreement signed with Venezuela.
Mario Amador, president of the Chamber of Industries of Nicaragua (Cadin), said the country has been buying oil at $120 and $130 a barrel when the price on the international market was slightly over $80. These prices are not benefiting the consumer.
Starting August 2009, Praxair Costa Rica, local subsidiary of Praxair Inc corporation, will export liquefied gases to Nicaragua and Panama.
To expand its market and export to the region, PraxairCosta Rica invested $15 million in a new 7.000 square meter facility, which is in the last stage of construction.
After declaring a "national emergency" in the energy sector, president Daniel Ortega decided to intervene in the company, which was having difficulties in meeting the local demand for gas.
Ortega authorized the Nicaragua Institute of Energy (INE) to temporarily take over the company's gas import and distribution installations and said that the intervention will be for six month and that this will in no way affect the property rights of the company, according to reports in the La Prensa newspaper.
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