The Panamanian Government is advancing in the structuring of a subsidy for the transport sector as a measure to mitigate the impact of the sustained increase in fuel prices and to prevent these costs from being passed on directly to users. The decision is in a technical evaluation phase, pending key information that transport guilds must provide on their historical consumption levels. Minister of Economy and Finance Felipe Chapman explained that the scope of the subsidy will depend largely on the behavior of international oil prices. 'Obviously, this depends on the price per barrel. For now, we are within a price band that the country can assume,' he added. Chapman also announced that the Government already has the technological platform advanced to execute the subsidy, but reiterated that it is essential to have the sector's numerical information to make the corresponding calculations and apply the program effectively. Minister of Government Dinoska Montalvo highlighted that, unlike on previous occasions, this time a more participatory approach with the actors of the transport sector has been chosen. 'A space has been opened for decisions to emerge from the actors themselves, understanding the current situation in the country and the need to maintain the order of public finances,' she indicated. Montalvo assured that there will be a state economic contribution as a palliative measure, although she stressed that it will be defined prudently and by consensus. 'We hope that the increase is manageable and that the country has the financial capacity to face it,' she stated. The head of the MEF warned that the most worrying scenario would be an extreme increase in crude oil. 'Hopefully, oil will not reach unsustainable levels of 200 dollars.'
