business

Gas cap faces criticism

The government's decision to set new limits on fuel prices sparked heavy criticism from distributors and consumer groups. Raúl Eduardo Molina, presidente de la Asociación de Consumidores Libres, said there is no justification for the move because prices were expected to drop anyway.

He added that the only explanation for the measure is that the government wants to recover the $6 million subsidy that it paid in September when it set the first cap on fuel prices.

Espósito Picardi, president of the Unión Independiente de Gasolineras de Panama, requested that the government meet with industry representatives and explain how these prices were adopted, because the biggest beneficiaries from it are the oil companies that import the product into the country.

Energy Secretary Dani Kuzniecky said yesterday that work is continuing by a committee of government officials tasked with examining the country's gasoline prices. The committee is tasked with setting a cieling for gas prices based on a number of factors, including the current price of crude oil.

Pedro Meilán, administrator of the Autoridad de Protección al Consumidor, said the group will be vigilant to ensure compliance with the price cap. Stations that charge more than the government could face fines of up to $5,000 and risk losing their operating license.

So far, a total of 18 stations have been cited for overcharging.