What Happened
Magistrates in Panama continue to receive 100 gallons of gasoline a month at state expense under the Judicial Code, even as fuel prices climb for households and businesses across the country. The benefit applies to magistrates of the Supreme Court of Justice, superior courts, and the Labor Court.
The law also allows these officials to use the fuel in vehicles they may acquire without paying taxes. Each magistrate can choose whether to use the allowance, which is financed with public funds.
Former Supreme Court magistrate Edgardo Molino Mola said the process required the magistrate to visit a designated gas station, where the original invoice remained and a copy was handed to the buyer. He said the audit department of each institution kept track of the spending.
A Benefit That Stands Out During Higher Fuel Prices
The timing has drawn attention because Panama has experienced several fuel price increases over the past month and a half, driven by international oil market volatility tied to tensions in the Middle East. Panama imports all of its fuel, so global swings quickly affect local prices.
Since the first increase on March 6, fuel prices have risen four times, including the latest adjustment on Friday, April 17. A sedan that previously cost about $20 to fill before the end of February can now require more than $35 and in some cases approach $50.
Molino Mola said he used the fuel for commuting between home and work, though he added that other magistrates used the allowance for trips to the interior of the country.
Government Pushes Spending Control
The rise in fuel costs comes as Panama’s public finances remain under pressure from debt and revenues that are still below what is needed. In that context, the government of President José Raúl Mulino, through the Ministry of Economy and Finance, issued a circular to the three branches of government, decentralized entities, public companies, and autonomous agencies with instructions to rationalize spending.
One of the main points in the circular, issued on March 31, is the rationalization of fuel use to what was “strictly” budgeted for 2026, with increases in that line item barred through budget transfers.
The government also approved a fuel subsidy aimed at easing pressure on transport operators and preventing higher passenger fares. The measure took effect on April 15 and covers the temporary stabilization of the price of 91-octane gasoline and diesel. In its first phase, it is expected to benefit about 45,000 transport operators in the select and collective sectors.
The contrast between rising fuel costs for the general public and fuel benefits for high-level magistrates has placed renewed attention on public spending rules and the privileges granted to certain officials under Panama’s legal framework.
Why It Matters
Fuel prices have become a sensitive issue in Panama because transportation costs affect nearly every part of daily life. The magistrates’ allowance is set by law, but it now stands out more sharply as families, drivers, and transport workers face higher costs at the pump and the state seeks to restrain spending elsewhere.