About 14 million 325 thousand dollars will be an additional contribution from the state in order to maintain the stabilization of the final selling price of fuel to the user until July 15, 2023
The temporary fuel price stabilization at $3.25 per gallon is permitted only for a gallon of 91 octane gasoline and low sulfur diesel, when the price per gallon of either of these fuels is higher than the stabilized price.
He executive body will adopt measures for the recognition of fuel importer-distributor companies of any balance resulting from compliance with Government Resolution no. 80 of July 18, 2022 and its amendments.
By using Government Resolution no. 12 of last February 14 Effects of Article 1 of Cabinet Decision no. 60 of May 19, 2022, were extended for a period of 44 days, with an additional contribution from the state up to the amount of 30 million dollars.
AIG records 46 million 921 thousand 430 fuel transactions to individuals by May 30, 2023, which is equivalent to approximately 878 thousand 766 vehicles that received a benefit in the amount of $1,151,385,305. 93 total amount spent, of which USD 240,858,876.90 is the subsidized amount.
In the transport sector and others, AIG registers 495,248 beneficiaries for the amount of USD 754,482,716.24, which is a total of USD 167,558,007.84 in subsidies.
57% of the total number of users refers to commercial vehicles, 25% to selective vehicles and 14% to collective vehicles, among others.
The international price trend of petroleum products showed significant reductions compared to 2022, even reaching these current fuel prices below the short-term prices before the start of the war in Ukraine, which contributes to the monthly reduction of program costs and presents an optimistic medium-term panorama, details Cabinet resolution.
However, even with the reduction of prices on the international market of oil and its derivatives, during the last quarter of 2022 and at the beginning of this year, and a noticeable improvement in the country’s economic indicators, there are still some socioeconomic conditions that require the retention of a temporary stabilization of fuel prices adapted to the national and international macroeconomics results.
The extension of this subsidy, approved by the State Government, represents a great effort and fiscal sacrifice, with the sole purpose of mitigating the high costs of products and services to the general population, as well as an additional incentive to continue reactivating the economy, the Cabinet Council said in a statement.
Source: Panama America
I am Jason Root, author with 24 Instant News. I specialize in the Economy section, and have been writing for this sector for the past three years. My work focuses on the latest economic developments around the world and how these developments impact businesses and people’s lives. I also write about current trends in economics, business strategies and investments.
