President Luis Guillermo Solís tried to walk a fine line between the economic and political implications of joining the Venezuelan-led Petrocaribe oil-buying scheme, which some lawmakers have advocated as a solution to curb Costa Rica’s rising gasoline prices, during a press conference Tuesday.
As Costa Rica’s gasoline prices reach record highs, politicians are scrambling to find a way to curb costs at the pump. Members of the leftist Broad Front Party think the answer lies in a Venezuelan oil-sharing scheme, Petrocaribe.
Although President Luis Guillermo Solís had promised not to use Ticos' euphoria over Costa Rica’s performance at the World Cup to promote increases in public utility rates, a 5.38 percent hike in electricity went into effect last Tuesday.
The Public Services Regulatory Authority (ARESEP) sent President Luis Guillermo Solís two proposals for lowering record-high fuel prices: 1) Eliminate fuel taxes and 2) Reduce spending at the National Oil Refinery (RECOPE).
President Luis Guillermo Solís called for a review of gasoline prices as part of a wider examination of Costa Rica’s energy options in the face of climate change and rising energy costs, during a press conference on Tuesday.
The high fuel prices are due in part to Costa Rica's 29 percent gas tax, which goes directly to the National Roadway Council (CONAVI) for roadwork, but the tax revenue hasn't been able to improve the country's roads.
