Energy Subsidy

Honduras's energy ministry announced new fuel prices effective July 27, with gasoline, diesel, kerosene, and vehicle gas rising by up to 5.59 lempiras per gallon in San Pedro Sula, while the government maintains temporary subsidies on regular gasoline and diesel.

Finance Minister Emilio Hércules said reducing an electricity rate hike requires a large fiscal cost to the state, since the tariff increase was originally set at 21.5%.

Alexander Godoy, a STENEE union representative, says a review of Honduras's electricity subsidy aims to ensure benefits reach only low-income families while eliminating aid to vacation homes and vacant properties, allowing state utility ENEE to strengthen its finances and reduce costs.