Honduras announces fuel price cuts, but vehicular LPG and kerosene will rise in price

The Secretariat of Energy announced a new fuel price structure in Honduras, with reductions in gasoline and increases in other derivatives. (PHOTO: Courtesy)The Secretariat of Energy (SEN) announced a new fuel price structure in Honduras, with reductions in several petroleum derivatives and increases in kerosene and vehicular liquefied petroleum gas (LPG). The new values reflect the behavior of international prices and the economic relief measures the Government maintains to reduce the impact of fuels on household budgets and transportation costs. According to the information released by the institution, premium gasoline will see a reduction of L2.64 per gallon, while regular gasoline will decrease by L0.96. Meanwhile, diesel and domestic LPG will maintain their prices thanks to government subsidies. In contrast, kerosene will be one of the derivatives that will experience an increase, with an adjustment of L1.22, while vehicular LPG will rise by L2.15 per gallon. Premium gasoline will register a reduction of L2.64 per gallon, according to the values released by the energy authorities. (PHOTO: La Prensa)The new structure contemplates differentiated variations depending on the type of fuel and the economic support mechanisms applied by the authorities. These are the prices and adjustments announced by the Secretariat of Energy:Premium gasoline: down L2.64, standing at L154.51 per gallon. Regular gasoline: down L0.96, standing at L140.01 per gallon. Diesel: maintains its price at L153.53 per gallon due to the government subsidy. Kerosene: increases L1.22 per gallon. Domestic LPG: maintains its price at L249.62 per cylinder, thanks to the subsidy. Vehicular LPG: increases L2.15, standing at L58.66 per gallon. The adjustments represent relief for consumers of premium and regular gasoline, although users of kerosene and vehicular gas will have to face increases in their expenses. Regular gasoline will drop L0.96 per gallon as part of the adjustments announced for the Honduran market. (PHOTO: La Prensa)The SEN highlighted that the support measures remain in place as part of the government strategy to contain the effect of international variations on the national market. The Secretariat of Energy explained that the price of diesel remains stable through the absorption of the corresponding tax, with the aim of preventing international increases from being passed directly on to the Honduran consumer. According to the institution, between October 5 and November 1, diesel accumulated an international increase of L35.28 per gallon, a variation that will not be reflected in the price paid by consumers due to the state support mechanism. Regular gasoline also continues under a temporary economic support scheme, through which the Government absorbs 70% of the corresponding increase, according to the statement released by the SEN. Diesel will maintain its price at L153.53 per gallon thanks to the subsidy mechanism applied by the Government. (PHOTO: El Heraldo)In the case of liquefied petroleum gas for domestic use, the authorities maintain the subsidy to protect the family economy and prevent increases in the price of the cylinder used in Honduran homes. These measures seek to cushion the pressures stemming from the international market, especially in products that have a direct impact on transportation, merchandise distribution, and domestic consumption. The institution noted that the behavior of international prices continues to represent a challenge for the national energy market, which is why the Government will maintain the economic support mechanisms aimed at consumers."Given the increase in international fuel prices, the Government, through the Secretariat of Energy, maintains the economic relief measures to reduce the impact on the population's pockets," the entity stated. The subsidy policy aims to contain part of the costs that could be passed on to end users, in a context in which fuels affect transportation fares and the operating expenses of different economic sectors.