‘Ferrari owner can pay $6 or more’: Generalized fuel subsidy economist

On the morning of Tuesday, May 31, the economist and former President of the Central Reserve Bank (BCR), Carlos Acevedo, spoke in a Dialog TV interview with Ernesto Lopez about the measure implemented by the government for fuel subsidies as a measure to ease global inflation.

The economist emphasized that despite the fact that it is a useful measure for El Salvador, it should be concentrated, because there are thousands of Salvadorans who can pay the price of fuel in the market.

“Here in El Salvador there are thousands of cars in circulation and I’m sure their owners have the ability to pay $6 or more,” Acevedo confirmed.

The price of Superior Gasoline is currently between $6.00 and $6.05, and due to government support, it has been set at $4.31 in the central and western regions and $4.32 in the eastern region of the country.

“Give a very crude example, I’m a Ferrari owner and I go to the gas station for subsidized gasoline, and a Ferrari owner can pay $6 or more altogether. I’m an SUV owner with $60,000 diesel and I go to the gas station with subsidized diesel fuel. “.

“Then establish public fuel subsidies for tens of thousands of drivers who have the economic ability to pay the market price, and on the other hand the lower-income population does not have a car, they use public transportation,” he added. .

Last Wednesday, May 25, the legislature approved the extension of the special law for setting fuel prices in the Salvadoran territory, which will expire on May 31.

In addition, they extended the suspension of the collection of the special contribution to the stabilization of prices for public transport services (COTRANS) and the temporary suspension of the application of fees related to the special account for stabilization and economic development (FEFE).

This measure will continue to be extended for another three months, that is, until August 31.

“The problem here, according to the finance minister, is costing the country and the treasury $50 million per month to support these measures, and it is desirable to focus more on that,” Acevedo said.

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