Global Courant
Those who wish to buy propane gas as of June 16 must pay Q5.40 per pound and no longer the Q4.60 that it cost with the subsidy of Q0.80 per pound, whose validity ended on Thursday, June 15.
The prices that would take effect in the market as of this Friday are Q54, Q108, Q135 and Q189 for cylinders of 10, 20, 25 and 35 pounds.
The increases that the public will perceive are Q8, Q16, Q20 and Q28 per cylinder respectively.
Retailers consulted by Prensa Libre responded that they were told that they should apply the normal price without subsidy based on the one in force until June 15.
Others indicated that they were waiting for their suppliers to confirm if the subsidy will no longer be extended or if there will be any change in prices.
Consulted in this regard, the Vice Minister in charge of Hydrocarbons of the Ministry of Energy and Mines (MEM), Luis Ayala, reiterated that this June 16 prices will return to normal without subsidy: “Starting on the 16th, prices will begin to be seen without this support in the different outlets”.
He confirmed, as an example, that for the 25-pound cylinder, the normal price is Q135, and that when the subsidy was applied, the public paid Q115, but now it will return to Q135.
This means Q5.40 per pound.
With this, the 10-pound cylinder presentation will go from Q46 to Q54; the 20-pound one, from Q92 to Q108; the 25-pound was yesterday at Q115 and will go to Q135; while the 35-pound price of Q161 will return to the price of Q189.
It doesn’t cost the same anymore
When asked when the drop in international prices will be reflected in the cost at the national level, Ayala replied that “tomorrow (Friday) it will cost Q135 (25 pounds), and in the following days we may be seeing sales because the international market has had declines.”
The MEM is calculating how much the decrease could be, but the data is not yet clear because the updated data must be analyzed, it was added.
According to the US Energy Information Administration, the average monthly spot price for Texas propane gas has fluctuated between $1.45 per gallon in October 2021 to $0.79 per gallon as of March 2023.
The official explained that the Ministry and Congress have been promoting a bill to continue this benefit, because although prices are beginning to show slight decreases in the international market, it is still considered necessary for the population to continue receiving this benefit.
He added that the MEM will continue to control both prices, quality and quantity in the different outlets so that consumers receive the product in the best conditions. “In addition, starting next week we will be advertising the prices that we find in the different outlets so that Guatemalans look for the cheapest options.”
Data
For about a year and a half, the price of propane gas has been subsidized at a rate of Q0.80 per pound. The corresponding to 2023 was approved for three months, according to decree 5-2023 and entered into force on March 16 for a total amount of Q150 million. Between 2022 and 2023, Q624.6 million have been paid to importers, to benefit 1 million 800 thousand households, according to data from the MEM as of May 30 of this year. As of March 15, 25.9 million cylinders had been sold at a discount. The most demanded presentation is the 25-pound cylinder.
