This measure was proposed in October 2022 as part of the Peru Impulse Plan to prevent the international price of oil from impacting the cash flow of this fund, intended to contain its volatility in the domestic market.
The Congress of the Republic made official today the publication of Law No. 31674, which incorporates an item of S/ 1,643 million 870,000 in favor of the Fund for the Stabilization of Prices of Petroleum Derived Fuels (FEPC).
This measure, presented by the Executive in October 2022, is part of the Plan Impulso Peru, will prevent the volatility of international fuel prices from being passed on to final consumers, especially the low-income sectors, within the framework of the Emergency Decree 010-2004.
39% of these resources, corresponding to some S/630 million, ensures compliance with the payment of obligations for Petroperú. Further behind is its main competitor, Repsol -with S/361 million-, in addition to Exxon Mobil and Valero.
“Petroperú urgently needs it to ensure the imports that are coming, if the same thing that happened a few months ago is not going to happen and there will be a shortage of the market due to lack of resources,” the Peruvian Hydrocarbons Society (SPH) said at the time.
The FEPC is not a subsidy, but rather a mechanism that serves to prevent the consumer prices of the fuels under its scope from rising abruptly, so that when the price of oil falls, the resources are returned to the fund.
The Ministry of Economy and Finance (MEF) explained at the time that, if the FEPC did not exist, Peru would have inflation much higher than the 8.56% registered at the end of 2022.
Source: Larepublica
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