consumer affairs

Cheaper gas increases fuel sales

Some believe the price caps yield benefits for all; others say it only benefits a few.

Since the establishment of price caps on the sale of fuel in Panama, it appears that consumers and fuel distributors alike have benefited.

On the one hand, it has prevented oil companies from abusing the public's pocket, and on the other, employers in the industry have enjoyed increased sales.

This conclusion comes from a report by the National Secretariat of Energy, which reveals that the combined factors of the establishment last Sept. 25 of maximum retail prices for the general public, and the decline of fuel costs, have represented a discount of $2.63 for 95 octane, $2.47 for 91 octane, and $1.69 for diesel fuel.

"You can fill up your tank and still have something left over to use for other things," said Wolfram González, director of hydrocarbons at the Secretariat of Energy.

A comparative monitoring of the months of August and September, as compared to October and November, also revealed an increase in fuel sales in some stations in Arraiján, for example, where sales of petrol increased by 54 percent and diesel by 56 percent. According to authorities, this can be attributed to the fact that people are once again buying fuel from these stations, instead of in Panama City as they did when they were shopping around for the lowest prices.

González adds that: "The fuel would never have declined so fast to below $2 if the government had not taken action to cap prices.”

But Hugo Cuéllar, president of the Association of Gasoline Dealers and Oil Derivatives, complains that the government has presented a half-baked solution, claiming that: “If they can regulate the price at retail gasoline stations, why not regulate the marketing chain itself, and tell importers, wholesalers, retailers and carriers that they can earn up to so much. Why only the retailer? Why not regulate the marketing chain and end the problem for once and for all?"

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