Guatemala to End National Fuel Subsidy by End of July

Guatemala's temporary fuel subsidy, introduced in May to cushion consumers from soaring international oil prices linked to the Middle‑East conflict, will conclude on 31 July. The programme provided a discount of Q8 per gallon of diesel and Q5 per gallon of gasoline.

Finance Minister Jonathan Menkos said that falling global oil prices and the depletion of allocated funds justify ending the aid. By 21 June, 79% of the Q2 billion budgeted (about Q1.58 trillion, roughly US$76 million) had been spent, with an average weekly outlay of Q197.5 million. Futures prices are projected at US$70.44 per barrel in August and US$66.41 by December 2027. No extension request has been made by the executive, and the Congress indicated the funds could be redirected to education, health or infrastructure.

The subsidy’s cessation is expected to return fuel prices to pre‑subsidy levels, while the government will continue monitoring verification and supervision mechanisms for consumer protection.