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Stabilization Fund: official injection of S/1,643 million to contain fuels

Stabilization Fund: official injection of S/1,643 million to contain fuels

The Congress of the Republic made official today Law 31674, which approves provisions to ensure compliance with the payment of obligations of the Fund for the Stabilization of Prices of Fuels Derived from Petroleum (FEPC).

The mechanism, provided based on the recommendations of the Plan Impulso Peru, strengthens said fund with an additional S/1 million 643,870 in favor of producers and importers under the scope created by Emergency Decree 010-2004 and amendments.

The proposal of the Ministry of Economy and Finance (MEF) and the Ministry of Energy and Mines (Minem) was presented in October 2022, due to the fact that the prices of fuels derived from petroleum experienced a greater variation as a result of the pandemic and the war conflict between Russia and Ukraine.

This impacted the rise in food prices, the retraction of aggregate demand and the slowdown of the economy, among other damages related to the macroeconomic balance, according to the Executive.

The FEPC was created in 2004 as an intangible fund, intended to prevent the high volatility of the prices of crude oil and its refined products from being transferred to consumers. In other words, the aim was to mitigate the abrupt rises in the increase in these prices that are generally caused by external effects such as the international price of a barrel and other factors.

Source: Larepublica

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