What Happened
President José Raúl Mulino defended Panama’s fuel subsidy for transport operators as a major public spending effort aimed at easing pressure on households and the food supply chain. Speaking after a visit to the Ciudad de las Artes, he said the measure helps stabilize freight costs for food and fares paid by passengers.
Mulino described the program as a “gigantic fiscal effort” carried out daily and monthly while global market pressures continue to affect prices. He said the state absorbs the difference between the real cost of fuel and what users pay in order to protect consumers and other sectors of the Panamanian population.
Subsidy Enrollment and Expansion
The president urged transport operators to register on the Panamá Conecta platform to access the benefit. According to Adolfo Fábrega, director of the AIG, 33,815 subsidized fuel deliveries have already been made and 33,289 vehicles have been approved.
Fábrega also announced a change in how the subsidy will work. To avoid problems caused by price differences among stations, the system will no longer be based on liters and will instead operate through a monetary amount. He added that the benefit will expand starting Thursday to include artisanal fishing and food cargo transport.
Justice and Institutional Balance
Mulino also addressed the state of justice and institutional relations in the country, saying he does not interfere in the work of other branches of government. His comments came amid tensions involving the Public Ministry and the Comptroller General’s Office.
He said he believes in the independence of state powers and expressed concern about a climate of impunity and selective enforcement. The president also said his administration has filed more than 350 criminal complaints and expects the competent authorities to respond to the public’s demand for accountability.
Food Supply, Water and Infrastructure
On food security, Mulino said he will not allow rice imports while national inventory remains available. He said current stocks are guaranteed through October and argued that local producers should not be harmed while they continue working in the fields.
He also pointed to water projects in Azuero, where 30 wells are being rehabilitated, and to plans that could benefit 600,000 people in Panama North and East. In infrastructure, he confirmed the construction of the first 50 zarzos, or pedestrian footbridges, in hard-to-reach areas, along with funding approval for a second phase.
What This Means
The subsidy remains one of the government’s most visible measures for easing transport and food distribution costs. Its expansion to fishing and cargo transport signals a broader attempt to cushion essential economic activities from fuel-price pressure while keeping basic goods moving through the country.
Mulino also said he may call extraordinary sessions of the National Assembly to discuss the Economic Substance Law, a file he considers important for Panama’s evaluation by the European Union in October.