Honduras implements temporary diesel tax relief to curb fuel prices

The Honduran government has implemented a 30-day measure to absorb L12.01 per gallon of diesel to mitigate the impact of rising international fuel prices. This measure specifically covers the Aporte para la Conservación del Patrimonio Vial (ACPV) component, preventing the cost from being passed directly to consumers. National Congress President Tomás Zambrano supported the decision, noting that international geopolitical conflicts, particularly in the Middle East, have driven up fuel costs affecting households and productive sectors.

However, the decision has sparked debate regarding public finance sustainability. Experts estimate a revenue loss between 300 and 400 million lempiras in the first month, a figure that could reach 1,000 million lempiras if extended to 90 days. Economists and analysts suggest that to avoid increasing external debt or cutting social spending in health and education, the government should consider a public savings package. Proposed solutions include reducing state apparatus expenditures and implementing teleworking within the public administration.