Oil & Gas Alert – September 2022

Provisions related to Fuel Price Stabilization are enacted

Supreme Decree Nº 011-2022-EM, published on September 18, 2022 in the Official Gazette “El Peruano” (“Supreme Decree”), amended rules that dictated measures for the stabilization of fuel prices and modified Emergency Decree Nº 010-2004 that created the Fund for the Stabilization of Prices of Fuels Derived from Petroleum (“FEPC”), which Article 2, paragraph m) specifies the hydrocarbons that shall be considered as subject to the FEPC.

The amendments introduced by the Supreme Decree are briefly mentioned below:

• Section 1.1 of Article 1 of Supreme Decree Nº 002-2022-EM, which modified the list of products subject to the FEPC, was amended in order to extend the validity of the inclusion of 84 and 90 octane Gasoline, 84 octane Gasohol and Liquefied Petroleum Gas for bulk (LPG-G) in the FEPC until December 31, 2022, as long as they comply with the technical conditions set forth in Articles 2 and 3 of Supreme Decree Nº 002-2022-EM.
• The provisions referred to the update of the Target Price Band of Diesel BX for vehicle use, regulated in numeral 2.2 of Article 2 of Supreme Decree Nº 025-2021-EM, which specified the technical conditions required for the inclusion of such product in the FEPC, were modified.

This amendment specifies that the update of the Target Price Band for Diesel BX for vehicle use shall be equivalent to five percent (5%) of the variation in the final price to the consumer of this product and in no case shall exceed such variation. It also provides that, if due to market conditions the update of the Target Price Band for the product in question implies a lower variation in the final price to the consumer than the percentage indicated above, the update of the Band shall reflect such lower variation, depending on whether the lower limit or the upper limit is exceeded.

Any query on the matter may be answered by doctors Jorge Pérez-Taiman (jpereztaiman@estudiorodrigo.com), Carolina Noriega (cnoriega@estudiorodrigo.com), Piero Scarafone (pscarafone@estudiorodrigo.com) and/or Talía Hormaeche (thormaeche@estudiorodrigo.com).