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Acodeco Reverses Position on Mandatory Ethanol Bill, Raising Questions in Assembly

What Happened

The Consumer Protection and Competition Authority (Acodeco) changed its position on Bill 443, which would require ethanol to be blended into gasoline in Panama. In a letter dated 5 February 2026 to Deputy Alexandra Brenes, Acodeco administrator Ramón Abadi Balid warned that the proposal violated constitutional principles and would limit consumer choice. During the bill’s first debate, however, Abadi publicly defended the initiative and said Acodeco supports its approval.

Background

Bill 443, presented in October 2025 by the minister of the Presidency, Juan Carlos Orillac, proposes a mandatory 10% bioethanol blend in gasoline as part of the country’s biofuels policy. In the February letter, Acodeco concluded the bill “imposes a single market option” and suggested this could contradict constitutional protections for free competition and consumer rights.

The Debate

During the first debate, held at the headquarters of the Latin American Parliament (Parlatino), Abadi told lawmakers and representatives from civil organizations that Acodeco now supports the project. He appealed to Article 50 of the Constitution — arguing that private interest must yield to public or social interest — when explaining the agency’s current stance. Abadi was observed in the audience during portions of the session but did not respond when Deputy Brenes publicly questioned the change.

Reactions

Deputy Alexandra Brenes said she was “desconcertada” (disconcerted) and asked what had changed between the agency’s written warning and its public position at the debate. She highlighted that the bill itself had not changed since the February letter, and pressed for an explanation of why the agency moved from a critical assessment to endorsement.

What This Means

The switch in Acodeco’s position highlights a wider tension in the policy debate over biofuels: balancing consumer choice and market competition against public-policy goals such as environmental or energy-security objectives. The episode is likely to intensify scrutiny from lawmakers and consumer groups, who will want clarity on the legal and technical grounds for the agency’s reversal before the bill advances through subsequent parliamentary stages.

As the legislative process continues, questions about constitutional interpretation, consumer protection, and the evidence supporting mandatory blending will be central to how Bill 443 is evaluated by legislators and stakeholders.

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