The rise in fuel prices is also putting pressure on food transportation, mainly of legumes, vegetables, and fresh fruits from the highlands of Chiriquí to Panama City. Richard Atencio, a transporter of legumes and vegetables, pointed out that although the sector recognizes the need to adjust rates, so far no increase in freight has been applied. Atencio explained that currently the cost of transporting products such as potatoes, onions, or carrots is around 50 dollars per quintal, with loads that can reach up to 300 quintals per trip, depending on the orders of different clients. He indicated that the routes are carried out daily, with at least one truck leaving every day towards the city of Panama. The impact of fuel has been significant. “A truck that was spending between $380 and $400 on fuel is now spending $550 or more,” he stated. The transporter specified that filling a truck's tank went from costing between $400 and $420 to about $550, an amount that barely covers a round trip between Chiriquí and Panama. He added that this cost may vary depending on the weight of the load and the conditions of the route. In this context, the sector is evaluating applying adjustments to freight rates in the short term. Atencio warned that the increase in transportation costs could eventually be passed on to food prices, in a scenario in which, he said, no government support measures are contemplated. He detailed that the difference in spending per trip can reach about $200 more compared to previous weeks. Atencio indicated that this week they must make a decision about the increase, although so far no formal meetings have been held with producers to define new rates. The transport of these products originates mainly in areas such as Cerro Punta and Volcán, from where the cold chain and capital markets are supplied.
Fuel Price Hikes Pressure Food Prices in Panama
Rising fuel costs in Panama are increasing transportation expenses for food, potentially leading to higher prices for staple goods. The transport sector is considering fare hikes, which could negatively impact consumers.