Ministry of Energy and Mines publishes regulation that will reduce the price of propane as of October 1

The Ministry of Energy and Mines (MEM), published this September 28, 2022, in the Diario de Centro América, the Government Agreement 242-2022 with which it issues the Regulation of the Law of Temporary Social Support to Propane Gas Consumers , which was approved by the Congress of the Republic on September 7.

With the publication of this agreement, the beneficiaries of this aid will be able to count on it as of Saturday, October 1, since distributors will have to offer propane gas cylinders at lower prices than those that have prevailed in recent weeks.

This new subsidy will last for two months and will cover between Q8 and Q28, depending on the capacity of the gas cylinders.

The new contribution will be given after the Legislature reformed the “Law of temporary social support for propane gas consumers” and that in its article 2 it states that “The Executive Body is authorized so that, through the Ministry of Energy and Mines, it grants temporary social support to consumers of Propane Gas (Liquefied Petroleum Gas -LPG-), bottled in cylinders of ten (10), twenty (20), twenty-five (25) and thirty-five (35) pounds.

The contribution to propane gas consumers of Q0.80 per pound and will be applied particularly in cylinders of 10, 20, 25 and 35 pounds.

According to the MEM reference prices, valid from September 26 to 30, 2022, without temporary social support, they are as follows:

• 10 pound cylinder, Q57
• 20 pound cylinder, Q114
• 25 pound cylinder, Q142
• 35 pound cylinder, Q199
• 100 pound cylinder, Q568

With the social support provided by the Government, as of October 1, prices would drop as follows.

• 10-pound cylinder, has a Q8 subsidy and would cost Q49
• 20-pound cylinder, has a Q16 subsidy and would cost Q98
• 25-pound cylinder, has a Q20 subsidy and would cost Q122
• 35-pound cylinder, has a Q28 subsidy and would cost Q171
• *100-pound cylinder will continue to cost Q568, because it does not have a subsidy

Verification and sanctions

The regulation also establishes that the MEM, through the DGH, the Ministry of Economy, through the Diaco, and the SAT will verify the transfer of the benefit to consumers.

The MEM, through the General Directorate of Hydrocarbons, will develop a monitoring and control program for gas bottlers and outlets that sell propane cylinders, whether scheduled or due to complaints of non-compliance with what is regulated by law.

To impose the sanctions established by law, the Diaco will take into consideration the report prepared in the control visits, the dates of the gas cylinder purchase and sale invoices.

To corroborate the information contained in the invoices issued by the gas bottlers, the National Registry of Persons must provide the SAT with the following information.

• Full name of the holder of the Personal Identification Document
• Marital status
• Date of birth or death (if applicable)
• Department and municipality of birth
• Sex
• Nationality

The outlets that have cylinders at the beginning of the regulation’s validity, must cover them with the purchase invoice issued by the bottler, to determine which ones were bought before and how many after April 1 and which should already apply the subsidy.

It adds that the cylinders purchased before the end of the temporary support law and were not sold within the validity of the subsidy, must apply the temporary social support benefit to the cylinders.