Costa Rica News – I would think that this report might need to be done with a party without a clear conflict of interest. Recope has a monopoly on fuel in Costa Rica and it focuses its operations to meet the tasks of importing, refining, processing and distribution of fuels demanded Costa Rica.
However, with some of the highest fuel prices in this hemisphere President Solis is looking into other options. What are the reasons behind the astronomical fuel prices in Costa Rica? How can the prices be reduced? Does Recope need to be monitored better to investigate for corrupt practices?
With all of those questions in mind President Solis has been looking into the option of joining Petrocaribe, an oil alliance of many Caribbean states with Venezuela to purchase oil on conditions of preferential payment.
To no one’s surprise Recope has stated that joining Petrocaribe is not a good idea and has even put together a report showing why it would not help prices.
The report AS-P 0013-2014, presented by Recope, suggests that Costa Rica should not go that route to meet the current demand of 54,000 barrels of oil per day.
This report calls into question whether Petrocaribe would be the cheapest option available on the international market. It also states that “there are a number of variables that greatly reduce the profit margin.”
This report was made after the Frente Amplio party suggested that going with Petrocaribe could result in significant price declines. Recope calls Frente Amplio’s proposal “unrealistic.”
If we were to join Petrocaribe, part of the bill would be paid on the spot and the other part on credit, over 25 years. This will not necessarily decrease prices but have us paying them over a longer period of time, in terms of public debt.
I think if I were Costa Rica I would get a second opinion.
