Panama addresses the impact of rising fuel prices due to the conflict in the Middle East

Felipe Chapman, Panama’s Minister of Economy and Finance, assured last week that the country remains stable in the face of the Middle East crisis, which has generated a rise in oil prices, with consequences for the price of electricity, gas, and transportation.

According to the official, the country “can rest assured, as there will be no shortages. Fortunately, there is sufficient fuel availability in our American continent.”

However, he indicated that authorities are continuing to evaluate contingency measures to reduce “the impact of the fuel price increase and thus prevent the population from being affected by a rise in the cost of living.”

Although the increase in oil prices represents higher subsidy expenses for the State, Chapman stressed that without implementing measures, this increase would be passed on to public transportation fares, electricity, and the price of a 25-pound tank of gas. He stated that they will have to adjust finances and reallocate resources to address the situation.

According to the minister, “if the upward trend continues and the conflict persists, the government will have to adjust its finances, since resources, unfortunately, will have to be restricted.” “We will have to be very prudent and disciplined in cutting other Panamanian government expenditures.”

Last Tuesday, the official indicated that if the conflict in the Middle East continues, measures such as the possible implementation of teleworking in some economic sectors, rationing the use of official vehicles, reducing government mailings, authorizing vacations for non-essential personnel, and implementing staggered work schedules will be evaluated.

M.Pino

Source: metrolibre

(Reference image source: Marek Studzinski on Unsplash)

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