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Panama to switch fuel subsidy cap to dollar limits after transport complaints

What Happened

The Panamanian government will change how the fuel subsidy weekly cap is calculated after users reported technical problems tied to the current system. The new rule will base the subsidy limit only on money, not liters, in a move designed to make the benefit easier to use and more consistent across fuel stations.

Adolfo Fábrega, administrator of the Authority for Government Innovation, said the Ministry of Economy and Finance will issue a new resolution to implement the change. He said the current method created distortions because the amount subsidized could shift depending on the selling price of fuel at each station.

Under the old setup, a difference of just a few cents per liter could alter how far a weekly subsidy went. Officials said the switch to a dollar-based cap is meant to remove those complications.

Why The Change Matters

The adjustment comes after a meeting involving Fábrega, Finance Minister Felipe Chapman and Government Minister Dinoska Montalvo. The decision affects a program that has become a key support measure for transport and other eligible sectors in Panama.

By tying the limit to a fixed amount of money rather than liters, the government is aiming for a simpler system that is less sensitive to price changes between stations. That should make the subsidy more predictable for drivers who depend on fuel for daily operations.

Fábrega said the government will act to prevent further problems in the use of the subsidy cap, stressing that the new method will focus exclusively on amount.

More Sectors Are Being Added

Once technical validation is complete, the platform will also open registration for two additional sectors: artisanal fishing and food cargo transport. The system already covers taxis, school transport and buses.

Officials said those two new groups took longer to integrate because their validation process is more complex. Unlike taxis and buses, they do not have standard vehicle plates or operating certificates registered with the public transport authority, which made automated checks more difficult.

Platform Usage Continues To Grow

Government figures show strong uptake of the subsidy platform nationwide. More than 33,815 subsidized fuel dispatches have been completed, and 33,289 vehicles have been approved after registering on the official Panamá Conecta portal.

Authorities said more than 90% of registration requests are being approved. The system automatically checks whether a vehicle is up to date with the transport authority and has a valid license plate.

To use the subsidy at the station, drivers present their ID card and plate number. The attendant verifies the vehicle in the system, processes the fuel sale and completes the transaction. A single vehicle can also have several registered drivers, as long as the weekly limit assigned to that vehicle is respected.

The change marks a further step in the government’s effort to stabilize the subsidy program while expanding its reach to more transport and production sectors in Panama.

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