Energy Policy

The head of Honduras's national business association says fuel subsidies do not solve the country's vulnerability to global oil-price swings and calls for structural measures—better public transit, revised work schedules, and a long-term energy strategy—to reduce fuel consumption and protect the economy.

Honduras's state power utility will forgive 100% of accumulated electricity debt—including penalties and interest—for low-income residential customers with average monthly consumption up to 250 kWh, under Article 20 of the Energy Justice Law approved in August.

Decree 250-2026, published in the official gazette on October 16, entered into force authorizing the Finance Ministry to allocate up to 11 million lempiras (about $440,000) to subsidize electricity rates for residents of Utila, Bay Islands, through local utility UPCO.

Regular gasoline, kerosene, and vehicle gas will rise by up to L2.50 per gallon (about $0.10) in Tegucigalpa and San Pedro Sula beginning Monday, October 12, while diesel prices remain frozen.

Honduras's energy regulator approved a 0.64% average rate increase for state utility ENEE users effective October 1, but a legal rate freeze prevents the increase from appearing on bills; the government will absorb the deferred costs.

Darwin Ponce, president of the consumer advocacy group Artículo 19, says Honduras lacks adequate fuel-storage capacity, forcing weekly purchases at current prices instead of buying in bulk when prices are lower.

The head of Honduras's fuel distributors association says the country lacks a national energy policy and reacts to crises rather than planning ahead, warning that fuel strategy is critical to economic stability.

Honduras's electricity regulator approved a 0.64% rate increase for the fourth quarter of 2026, but the newly enacted Energy Justice Law blocks ENEE from passing the increase to consumers, keeping electricity bills frozen through March 2027.

A legislative commission and the National Association of Gas Distributors explored ways to reduce liquefied petroleum gas (LPG) costs, including allowing consumers to purchase partial tank fills according to their budget rather than the standard 25-pound full tank.

Honduras's failure to enact and publish reforms to its electrical-sector framework has raised alarms among engineers and business analysts, who worry about last-minute renegotiations, weak implementation, and the state utility's deepening reliance on private contractors.

Darwin Ponce, head of Honduras's Artículo 19 consumer-protection association, disputed claims of a genuine fuel subsidy, saying the government has not disclosed which budget line funds it and rejected relying on foreign companies for short-term relief instead of pursuing futures purchases and a petroleum stabilization fund.

The government raised its subsidy of diesel and regular-gasoline price increases from 50% to 65%, spending about 1.3 billion lempiras (roughly $50 million) to shield consumers and transport from Middle East conflict–driven oil volatility.

Honduras increased its temporary fuel subsidy from 50% to 65% to cushion households from rising global oil prices, with new fuel prices taking effect September 14 in Tegucigalpa and San Pedro Sula.

Honduras's Energy Ministry announced price increases for all fuel types effective September 14, with premium gasoline and kerosene rising by up to L3.86 per gallon in Tegucigalpa and similar increases in San Pedro Sula, while domestic cooking gas remains subsidized.

President Asfura announced plans to bid out approximately 600 megawatts of new electric-generation capacity to reduce reliance on costlier spot-market power and lower electricity costs, while reporting his administration has halved the overdue payments owed to power generators.

Honduras's new Energy Justice Law temporarily freezes ENEE electricity rates for six months, allows eligible low-income households to seek forgiveness of accumulated debts up to 250 kWh monthly consumption, and creates tax breaks for residential solar-panel systems.

Lawmakers approved the Energy Justice Law on final vote with 78 votes, restructuring the state electric utility ENEE through legal reforms to the sector's framework while keeping it publicly owned.

Lawmakers are intensifying negotiations to break a months-long deadlock over reforms to Honduras's electric power system, with legislators aiming to bring the bill to a final vote this week after incorporating opposition demands to protect state assets and reduce consumer costs.

Negotiations over a sweeping overhaul of Honduras's electricity system have hit a standstill in Congress after the Liberal Party created additional review committees, delaying a final committee report and blocking a floor vote despite weeks of technical work with private generators and international experts.

Mayors and lawmakers aligned with the Liberal Party are preparing an alternative energy proposal that would keep the national power utility ENEE under state control, combat electricity theft and meter fraud (cited as over 90% of losses), and renegotiate rates with private generators.

Honduras's Energy Commission is reviewing a Liberal Party counterproposal for restructuring the state electric utility into three operating subsidiaries, aiming to attract private capital for modernization while keeping state ownership of major generation and transmission assets.

Congress plans to vote next week on restructuring the state electricity company to stem annual losses exceeding 16 billion lempiras (about $640 million), but passage depends on the Liberal Party's backing and its proposed reverse-auction mechanism for energy procurement.

Congress suspended debate on a proposed energy modernization law after the Liberal Party and social sectors demanded more time and transparency, citing concerns over potential rate increases and the future of the state electricity company ENEE.

Vice President of Congress Godofredo Fajardo introduced a bill to block a 12.82% electricity rate increase announced by the energy regulator, keeping the price at 5.32 lempiras per kilowatt-hour instead of allowing it to rise to 5.98 lempiras, citing the burden on household budgets and business costs.

An energy analyst at the ASJ warns that Honduras's next power-rate adjustment could increase due to rising fuel prices and the country's heavy reliance on fossil-fuel generation, citing a lack of competitive bidding that has forced ENEE to rely on costly spot-market contracts.

Economist Amparo Canales welcomed fuel price reductions as temporary relief but stressed that savings must translate into lower consumer prices broadly, urging authorities to monitor for pricing abuses.

Honduras is preparing an international tender for 1,500 megawatts of firm capacity using liquefied natural gas, aiming to diversify its energy matrix and add capacity needed to meet growing demand over the next decade.

The Liberal Party declared support for reforming the national electricity utility ENEE but demanded that strategic state assets, including the El Cajón hydroelectric dam, be protected from any privatization as part of the overhaul.

Honduras's power regulator announced it has contracted two new fuel suppliers to help reduce nationwide electricity blackouts, a longstanding problem affecting the country's grid reliability.

At least 10 members of the Liberal Party in Congress oppose proposed counterreforms to the state power utility ENEE, signaling internal party division on energy policy.