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Peru Announces Targeted S/4 Diesel Subsidy for Formal Transport

The three-month program seeks to blunt a global oil-price shock by depositing payments to beneficiaries' Banco de la Nación accounts.

Overview

  • The government announced a nationwide subsidy of S/4 per gallon of diesel for formal mass public transport and for passenger and cargo operators, a measure many outlets reported on Saturday.
  • The Ministry of Transport and Communications will administer the scheme and payments will be made by direct deposit to beneficiaries' Banco de la Nación accounts, with monthly caps and rules to prevent duplicate payments.
  • The implementing decree of urgency that spells out exact rules has not yet been published so the transfers are not operational and transport operators are still waiting for the first deposits.
  • Mototaxistas and many fluvial operators are not covered initially because no consolidated registry exists for them; officials say they are building pads and expect progressive inclusion but that will take weeks.
  • The Executive rejected reviving the broad Fuel Price Stabilization Fund and says this focalized transfer should limit fiscal cost while covering roughly 15–20% of diesel expenses for beneficiaries, but slow rollout and ongoing regional protests in places such as Arequipa and Ucayali pose political risk.