Here’s an article translated from Nicaragua’s La Prensa newspaper detailing a recent decrease in the cost of butane gas used for cooking. This is to give some perspective on the price of gas used in the home. The house I lived in used a 25-pound tank to allow the cooking of three meals per day. It needed to be replaced about every month or so. Today: $1 U.S. = 19.0365 Nicaraguan Cordobas (source: www.xe.com). To read the article in its original Spanish, click here.

La Prensa: February 18, 2008

COOKING GAS LOWERS IN PRICE

While fuel prices continued their bullish rise yesterday for the second consecutive week, cooking gas experienced a significant decrease in value, offering a rest to Nicaraguan pocketbooks.

The reduction in the price of butane gas was confirmed yesterday by Public Relations representative Juliana Hernandez of the Nicaraguan Institute of Energy (INE).

Information supplied by Hernandez reflects that beginning Sunday [Feb 17] cooking gas cylinders lowered in price by three-and-a-half, nine, and 41 córdobas in three respective presentations.

While ten-pound gas cylinder sold at 99 córdobas last week, Sunday it began at 95.50 córdobas.

Similarly, the 25-pound tank of butane gas was at 238.50 córdobas [on Sunday], when eight days ago it sold at 247.50 córdobas.

It’s worth highlighting that the 25-pound tank is the product of greatest demand in Nicaraguan households.

And the 100-pound drum at 1,138.25 córdobas eight days ago, since Sunday has begun selling at 1,097.25 córdobas.

The aforementioned prices are only valid in Managua, since in the interior of the country prices for butane gas are higher due to the cost of transport.

Nonetheless, INE assured that prices in Nicaragua’s other departments also experienced variations in the cost of cooking gas cylinders.

Hernandez attributes the decrease in the price of butane gas to the 3.6% lowering of the price of Liquid Petroleum Gas in the international market.

Likewise, Hernandez noted that all distribution posts and agencies for butane gas must post the new INE-established prices on large signs.

For this reason, she announced that beginning [Monday Feb 18] the regulator entity will inspect butane gas distributors on a national level.

 

EFFECTS ON THE ECONOMY [La Prensa Sidebar]

Various economists have warned the government on the effects of the rising price of oil and its derivatives on the national economy.

For this reason, they’ve recommended working with urgency on proposals to reduce the country’s high dependence on oil, which sits at 80%, according to studies.

Every year Nicaragua imports 10 million barrels of petroleum and its derivatives, whose cost in 2006 added up to $700 million according to information from the Nicaraguan Central Bank (BCN).

 

*Translation Spanish-English by Aaron Devine