Panama gasoline price changes could come weekly

(PanamaNewsRoom) Panama’s government is considering adjusting gasoline fuel prices weekly.  to ease consumer concerns about large price swings.

Currently price changes are announced every two weeks and with the last hike the price of a gallon of 91 octane fuel increased 34 cents, and 95 octane by 35 cents.

That brought a wave of protests from consumers including bus and taxi owners, leading to demonstrations and demands for price increases for passengers  or subsidies.

The price of gas is set by a formula is largely based on the price of oil.

Unrest in the Middle East and the current disaster in Japan have caused the price of oil to spike.

Now the  Energy secreataria is considering adjusting fuel prices every seven days instead of every two weeks, to prevent such large price swings with the belief  idea is that multiple minor adjustments would create less concerns. Also under consideration is the elimination of some factors from the current pricing formula  that could result in lower prices.

But not everyone is happy with that approacah

Fuel companies officials say they are concerned about the formula being changed, as, in their eyes, it has worked since its introduction in 2003. They are concerned that the government plans on removing several costs from the formula, which the companies will still have to pay.

Said Aristides Chiriatti, manager of Chevron Panama:  "Reducing or eliminating any of these components could have a negative impact for importing companies, and have an effect on the reliability of supply.”

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Original Source: PanamaNewsRoom

Date Retrieved: March 18, 2011