What Happened
Panama’s National Energy Secretariat confirmed new regular fuel prices that take effect Friday, with gasoline and diesel all moving higher. The increase is 11 cents per liter for 95-octane gasoline, 10 cents per liter for 91-octane gasoline, and 15 cents per liter for diesel.
At the same time, the national government and transport unions agreed to activate a temporary fuel subsidy within 15 days. The measure is intended to soften the impact of rising international oil prices and prevent immediate pressure on transport fares and the cost of moving goods.
How the Subsidy Will Work
The temporary subsidy will cap 91-octane gasoline at $3.33 per gallon and diesel at $3.41 per gallon. It will not apply to 95-octane gasoline. Authorities are also building a digital database to register the workers and sectors that will qualify for the benefit.
That database will be used to organize freight carriers, the public sector, and artisanal fishing, along with transport-related certificates already operating in the system. The process is being coordinated across government institutions and the transport sector to make the subsidy operational.
Transport Sector Response
Canatra legal adviser Dorina Pérez said roughly 75,000 operating certificates must be structured and entered into a shared database linking the AIG, the Transit Authority, and transport-sector records. She said the subsidy is not an exclusive privilege for transportation, but a government tool to avoid fare increases for users and help limit higher food prices.
Canatra president Jorge Dimas Collado said the agreement with the central government means transport fares will not rise. He also said the government committed to recognizing the extra expenses transporters will face during the 15-day period while the database is completed and the subsidy is prepared.
Government Officials at the Meeting
The meeting at the Presidential Palace lasted just over an hour and included Minister of Government Dinoska Montalvo, Minister of Economy and Finance Felipe Chapman, and Nicolás Brea, director of the Transit and Land Transport Authority. Lawmakers also backed the temporary fuel subsidy as the government moves to contain the effects of global fuel costs.
The coming days will determine how quickly the system can be activated and how smoothly the price cap can be applied across the sectors included in the plan. For households, the key issue is whether the measure helps slow the spread of higher transport and food costs in the weeks ahead.