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Chiriquí cargo haulers warn of crisis as fuel subsidy rollout begins

What Happened

Cargo transport representatives from Tierras Altas, Renacimiento, Boquete and Tierras Bajas in Chiriquí marched to the provincial governor’s office on Tuesday to demand a direct channel with the national government over the fuel subsidy. The group says it has been left out of the negotiation tables even as operating costs continue to rise.

Hernán Cortés, president of the Association of Cargo Transport of Tierras Altas, described the situation as an economic squeeze. He said the cost of a trip to Panama City has doubled, with fuel expenses rising from about $400 to $450 per trip to roughly $900, while freight rates have not increased.

How the Subsidy Will Work

The government has said the subsidy application will begin on Wednesday, April 15, at fuel stations nationwide and will be introduced in phases. At first, it will apply only to collective transport, taxis, and school transport.

Adolfo Fábrega, general administrator of the Government Innovation Authority, said the price ceiling will be $0.90 per liter for diesel, $0.88 for 91-octane gasoline, and $1.00 for 95-octane gasoline. He said the Panama Conecta platform will be used to register beneficiaries, who will be able to apply online through the subsidies section.

Fábrega also said cargo transport drivers will be able to access the system later.

Why Cargo Transport Says It Is Under Pressure

The cargo sector says the current relief measures do not address its reality. Cortés said the digital requirements and the high volume of fuel consumed on each route — about 150 gallons of diesel per trip — make the subsidy far from enough.

He said transporters and producers are carrying the weight of the crisis and argued that the people moving food across the country have not been taken into account. Cargo trucks in Chiriquí play a central role in moving produce from one of the country’s most important agricultural regions to markets across Panama.

Broader Economic Concerns

Beyond fuel costs, the group says falling purchasing power is also affecting food consumption. Cortés said many Panamanians are choosing to spend on fuel to get to work rather than on groceries, a trend he says is weakening household demand.

The sector is calling for a broader solution that includes a review of the minimum wage to help revive the economy and make the basic food basket more affordable. Chiriquí currently produces an estimated 75% of the food consumed in Panama, raising the stakes for transporters who warn that supply chains could face serious strain if operating costs remain high.

The protest adds fresh pressure to a national debate over fuel support, transport costs, and the price of food in a province that is key to Panama’s agricultural supply.

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