The Consumer Protection and Competition Authority (Acodeco) has raised formal objections to a government-backed bill that would mandate the use of ethanol-blended gasoline across Panama. In an opinion sent to Deputy Alexandra Brenes of the National Assembly’s Trade Commission, Acodeco says the proposal conflicts with constitutional protections and could leave many drivers without viable fuel options.
What Happened
Acodeco submitted a written opinion dated February 5 to Deputy Alexandra Brenes addressing bill 443, which was presented to the Assembly by the Minister of the Presidency, Juan Carlos Orillac, in October 2025. The bill is currently in its first debate before the Trade Commission, chaired by Deputy Ernesto Cedeño (Another Way Movement).
Acodeco’s Legal and Competitive Concerns
The authority argues the draft law would restrict consumer freedom by imposing a single fuel option. Citing Article 49 of the Constitution, Acodeco warns the measure “imposes a single market option,” which it says limits freedom of choice and could force owners of older or differently designed vehicles to use fuel that their engines do not tolerate well.
Acodeco also identified a competition problem. Referring to Article 298 of the Constitution, the entity says mandating a single fuel formula would reduce competitive conditions in the market, with potential effects on price, quality and availability. The authority emphasizes that Panamanian law requires the State to promote open and competitive markets rather than restrict them.
Risks to Users and Equipment
The opinion highlights the lack of provisions in the bill to protect consumers whose vehicles or equipment could be damaged or have warranties voided by the switch to ethanol blends. Acodeco warns that, without safeguards, the financial burden of any mechanical harm could fall on users.
Technical Studies and Regulatory Responsibility
Acodeco makes clear it does not possess specialized technical evidence regarding fuel blends and places that responsibility with the National Energy Secretariat. As the authority states in its letter: “This Authority does not have specialized technical, scientific, economic or laboratory studies on the quality, chemical composition or mixtures of fuels or oxygenated gasoline with anhydrous bioethanol for automotive use, not by omission, but because both the technical regulation and the control of the quality of fuels distributed at the national level are part of the legal competencies of other authorities.”
What This Means
Acodeco urged the Trade Commission to consult vehicle manufacturers, distributors and suppliers, and other economic agents to determine warranty and equipment impacts before advancing the bill. Lawmakers considering bill 443 will need to weigh constitutional concerns, market competition effects and outstanding technical questions about ethanol blends as the proposal moves through the legislative process.