Fuel Subsidy

Honduras's temporary L12.01-per-gallon diesel subsidy, running October 5–November 4, will cost the state approximately 369 million lempiras (about $15 million), according to a National Autonomous University analysis; drivers using 40 gallons monthly will save roughly 480 lempiras.

The government will absorb the ACPV fuel tax on diesel for 30 days to ease high fuel costs, but the National Association of Industrialists warns the subsidy is temporary and says structural solutions—infrastructure, technology, and efficiency—are needed to address rising global oil prices.

Starting October 5, the Honduran government will absorb L12.01 per gallon of diesel for 30 days to cushion consumers from rising global fuel prices, while also maintaining existing subsidies on regular gasoline and cooking gas.

Congressional committees on mining and transport met with government agencies and the private sector to analyze the impact of rising fuel costs and seek measures to limit the burden on Hondurans, with fuel subsidies having cost the government over L1.3 billion so far in 2026.

Honduras's mining and hydrocarbon commission met with fuel importers to discuss pending legislation on hydrocarbon regulation and biofuels, as well as a proposed price-stabilization fund for diesel and gasoline; the government has spent about 1.2 billion lempiras (roughly $48 million) subsidizing fuel increases since February.

Honduras's taxi association ruled out raising fares despite higher fuel costs, instead negotiating with the government for compensatory bonuses and vehicle-gas subsidies to offset operating expenses amid competition from ride-hailing apps and illegal services.

A former president of Honduras's economists' association said the government's decision to raise the fuel subsidy from 50% to 65% warrants scrutiny given global oil prices exceeding $100 per barrel, and cautioned that prolonged subsidies strain public finances.

The government and taxi organizations agreed to provide free conversion kits to switch taxis from diesel to natural gas, a pilot project expected to cut fuel costs by 50% and prevent fare increases in the capital.

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.

Freight-transport leaders say they will stage protests if authorities do not address rising diesel costs, citing operating losses and a lack of government response to their requests for a 12-cent-per-gallon fuel subsidy and enforcement of an April price adjustment.

Honduras has spent about 950 million lempiras ($38 million) on fuel and electricity subsidies through mid-2026, exceeding the original budget and prompting officials to consider limiting the benefit to lower-income families.

Transport union leader Wilmer Cálix said the government must pay a pending compensation bonus to keep urban bus fares unchanged; without it, the sector will seek a fare increase to cover rising diesel and parts costs.

Honduras's fuel subsidy has already cost 860 million lempiras (about $34.5 million) against a budgeted 680 million, with full-year costs projected at 1.2–1.3 billion lempiras, prompting the Finance Ministry to plan internal budget adjustments and consider narrowing the subsidy to lower-income households.

The head of Honduras's petroleum agency says the government's temporary fuel subsidy for September is L33.46 per gallon this week.