Energy Costs

The director of Honduras's petroleum distributors association warns that fuel prices are expected to rise next week and recommends Hondurans reactivate conservation measures, citing volatile international market conditions.

Gasoline, diesel, and kerosene prices increased across Honduras starting July 20, with sector officials attributing the hikes to Middle East instability affecting global oil supplies and urging consumers to adopt fuel-saving measures.

Honduran authorities forecast slight fuel price increases next week, citing the ongoing conflict in the Middle East.

Juliette Handal, former president of Honduras's main business council (Cohep), attributed a first-quarter decline in investment to security concerns, including gang violence and massacres, rising energy costs (set to jump 12%), and international supply-chain disruptions, all of which she said undermine investor confidence.

The president of Honduras's renewable energy association says the recent electricity rate increase stems from global fuel prices rather than non-renewable generators, and calls for greater investment in clean energy to reduce dependence on imported fuel.

Honduras's electric utility regulator approved a third rate increase for 2026 effective July 1, expected to raise bills 5–10% through September, pushing year-to-date increases to nearly 15% amid inflation above target and lempira depreciation.

International oil prices have fallen to around $82 per barrel, but energy sector representatives warn fuel prices in Honduras could take four to six months to reflect the decline due to exchange rates, import costs, and other market factors.

Samuel Rodríguez, a renewable energy generator, said electricity rates are due for adjustment because high fuel prices driven by the US-Iran conflict are raising energy production costs.

Honduras's power regulator confirmed a third-quarter rate increase taking effect July 1, driven by higher generation costs, fuel prices, and lempira depreciation; the exact percentage will be announced within days.

Kerosene prices in Tegucigalpa have dropped 20.12 lempiras per gallon over six weeks, falling from a historic high of 144.33 lempiras to 124.21 lempiras as summer demand in North America eases.

All major petroleum products will drop in price starting June 9, with kerosene falling 4.14 lempiras per gallon and regular gasoline declining 3.45 lempiras per gallon, as the Energy Ministry attributes the cuts to lower international oil prices following Middle East tensions.

A 12.48% increase in electrical rates for the third quarter of 2026 is straining micro, small, and medium-sized enterprises in the San Pedro Sula region, which say they cannot absorb the cost hike without losing competitiveness.

Engineer Salomón Ordoñez warned that a 12.48% increase in electricity tariffs will raise living costs and dampen foreign investment, urging transparent bidding and cuts to power-system losses to stabilize rates.