stabilization fund is from a contingency credit provided for in the PGN

This morning, the Ministry of Finance together with representatives of Petropar held a press conference to explain to communicators the Fuel Price Stabilization Fund project in Paraguay (Fondecpy) before its presentation in Mburuvicha Róga. In said event, the Treasury representative clarified, after journalistic consultations, the origin of the capitalization of US$ 100 million.

“It did not have to be taken from another item already assigned, since this was a contingency line of credit contemplated within the General Budget of the Nation (PGN), precisely in the event that certain measures like these had to be activated,” clarified today the director of Economic Studies of the Ministry of Finance, Juan José Galeano.

In this framework, the bill creating the Fondecpy provides for a subsidy of up to G. 1,500 per liter for a period of three months for Type III diesel and 93 octane naphtha, he said.

Related topic: Petropar lowers G. 500 from tomorrow the prices of type III diesel and 93 octane gasoline

During a virtual conversation with the media, he specified that these two types of fuels represent 75% of the market. Along these lines, the authority stated that the fund has two objectives, which are focused on mitigating the impact on the domestic market of fuel price fluctuations in the international market and establishing transitory contingency measures to mitigate the price increase in the international market. Internal market.

Likewise, he clarified that although the stabilization fund is focused on the short term, this will remain as a structure to mitigate future variations in the international price.

Read more: Fuel: “We are entering a destructive vicious circle”, says the head of the ARP

The director also pointed out that, with the incorporation of gasoline to the stabilization fund, the capitalization of up to US$ 100 million is maintained, which will allow the transitional measures to be carried out for both Type III diesel and 93 octane gasoline.

Similarly, he mentioned that the fund will have an administration through a trust. He assured that the fund will be autonomous and will not have interference from any entity and that will allow payments to be made directly, without intermediaries.

Evolution of the price of oil and fuels in March 2022. Photo: Courtesy.

On the other hand, the director highlighted that an article referring to transparency was included in the bill. He commented that all income and expenses made through the fund will be available on a web portal that is freely accessible to citizens. The director of the Petróleos Paraguayos Cabinet (Petropar), William Wilka, also participated in the meeting in virtual format, who explained the evolution of international prices and future trends.

It may interest you: You cannot create a fuel price stabilization fund in a hurry, says Leite

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