Wednesday, 28 September 2022 15:29

Treasury seeks maximum price for fuels and return of FEFE and COTRANS charges

Written by Evelyn Alas

The minister of Finance, Alejandro Zelaya delivered four initiatives to the President of the Legislative Assembly in order to protect the pockets of salvadorans in the face of the international inflationary crisis and cushion the economic cost of the same.

The first initiative refers to the extension of the liquefied petroleum gas stabilization fund, in order to keep prices fixed until december 31.

He also presented a series of initiatives related to the reform of the Transitory Law to fix Maximum Fuel Prices that include all the applicable attributes such as: Fomento Económico (FEFE), Fondo de Conservación Vial (FOVIAL), Contribución Especial al Transporte Público (CONTRANS), Impuesto al Valor Agregado (IVA).


In addition, it presented two requests to repeal the temporary suspension of the collection of FEFE and COTRANS on gasoline.

In other words, salvadorans will now see the collection of these two taxes in their receipts for fuel consumption.

He said that the economic situation is beginning to change regarding the increase in fuel prices and for this reason it is not necessary to have three bodies of law and only one will be needed to regularize the same subsidy mechanism.


Zelaya explained that the economic measures implemented in six months to prevent increases in fuel prices have allowed a total savings to salvadorans of approximately US$293 million, equivalent to US$1.5 million per day.

He emphasized that this portfolio of State, must not lose the path taken with investments and record results have been obtained last year, that is why they will continue to maintain this path.


With the repeal of the suspension regimes, the aforementioned taxes must be paid in accordance with the law; however, the State will continue to subsidize the difference between the prices set and those calculated with the reference formula.