Fuel Subsidies

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.

A Fosdeh economist proposed restructuring Honduras's fuel-subsidy program and reviewing public spending to address rising fuel prices, noting that increasing the subsidy from 65% to 70% has failed to keep prices down, while the government explores targeting diesel support to transportation and agriculture.

Former Liberal Party leader Yani Rosenthal says fallout from a foreign war has pushed Honduras's inflation beyond the Central Bank's target range, squeezing households and forcing the government to subsidize fuel and energy costs.