Loreto: oil canon and surcharge law modified to allocate more resources to municipalities

The Government of Peru enacted Law 31934, a law that modifies article 8 of Law 24300 and improves the distribution of canon and overcanon in Loreto. Device comes into force from January 1, 2024.

The norm was approved by insistence on November 9, with 100 votes in favor, 1 vote against and 6 abstentions. In June, the Executive had presented observations to the autograph that will now allow increasing the allocation of the oil fee in favor of local authorities of Loreto, reducing that allocated to the regional government.

The initiative proposes that the distribution of the oil canon must be carried out in accordance with the indicators of the total population, unsatisfied basic needs and the levels of hydrocarbon production calculated and set by the Ministry of Economy and Finance (MEF) in each constituency.

From now on, the distribution of oil canon In Loreto it will be carried out in the following way:

1. 10% of the total collected is allocated to the local governments of the municipality or municipalities where the natural resource is exploited.
2. 20% of the total collected is allocated to the local governments of the district municipalities of the provinces where the natural resource is exploited.
3. 40% of the total collected is allocated to the local governments of the district and provincial municipalities of the department where the natural resource is exploited.
4. 20% of the total collected goes to the regional government where the natural resource is exploited.
5. 5% of the total collected is allocated to the national universities of the department where the natural resource is exploited. The distribution must be in equal parts if there is more than one national university in the department.
6. 3% of the total raised goes to the Peruvian Amazon Research Institute.
7. 2% of the total collected is allocated to the national technological institutes of the department where the natural resource is exploited. The distribution must be in equal parts if there is more than one national technological institute in the department.

As for the oil surchargeits distribution must be carried out in accordance with the “indicators of the total population, unsatisfied basic needs and the levels of hydrocarbon production calculated and established by the MEF” for each constituency, as follows:

1. 40% of the total collected goes to the local governments of the department.
2. 52% of the total collected goes to the regional government.
3. 5% of the total collected goes to the national universities of the department. The distribution must be in equal parts if there is more than one national university in the department.
4. 3% of the total raised goes to the Peruvian Amazon Research Institute.

Regional governments and local governments allocate the funds allocated for oil canon and excess canon to peasant and native communities, as established in article 2 of Emergency Decree 079-2009.

The MEF, within a period of thirty calendar days from the entry into force of this new law, will prepare the distribution indices based on the modification provided in this rule.