Airplane fuel consumption is skyrocketing in Nicaragua, while vehicle use is slowly increasing

Two years after Daniel Ortega’s regime ordered a freeze on fuel prices, Nicaragua continues to sell the most expensive gasoline in the region. But that hasn’t stopped fuel consumption from rising between 3 and 40 percent between January and November 2023 and diesel consumption from setting a record. The consumption that grew the least was cooking gas and the consumption that grew the most was kero turbo, which is used by airplanes; This expansion coincides with an increase in the arrival of charter flights with immigrants, who continue their journey from here to the United States by land route.

Data from the Central Bank of Nicaragua (BCN) show that between January and November 2023, 243 thousand barrels of Cerro Turbo, used by aviation, were consumed in Nicaragua. This quantity is 40 percent more than the 174 thousand barrels used in the same months of 2022. Taking into account that between January and November, an average of about 22,100 barrels were used each month, total consumption at the end of 2023 could be around 265,100 barrels per barrel.

This means that despite the increase in charter flights, total Kero Turbo consumption in 2023 will remain below the 272,300 barrels that were consumed in 2017. When, before the outbreak of the socio-political crisis that continues to affect the country to this day, the number of arriving foreign tourists was increasing rapidly.

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Migrant smuggling increases Kero Turbo consumption

During the reference period of 2023, the month in which the highest consumption of Kerro Turbo was recorded was October, with 42 thousand barrels, that is, almost double the monthly average. This fuel use increase coincides with the record set by Managua’s Augusto C. Sandino International Airport during that month, as it received 126,200 passengers for the first time in its history.

Another record set at the air terminal in October was that only 45,500 of the passengers who entered by plane departed that way. Therefore, it is believed that approximately 80,700 travelers left Nicaragua by land seeking to reach the United States, with the majority heading north.

With an expansion of 15.3 per cent, consumption of fuel oil used to generate electrical energy was the second largest grower. This happens despite the fact that officials assure that the generation matrix is ​​changing and that it relies more on renewable resources every day.

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Does fuel produce more energy?

In fact, by 2024 the Ministry of Energy and Mines (MEM) estimates that last year’s trend will continue, when about 29 percent of total production was fuel-based.

Despite this statement, between January and November 2023, fuel oil consumption increased by 15.23 percent compared to the same months of 2022. In the reference period last year, 2.42 million barrels were used, a higher volume in relation to the 2.10 million barrels used between January and April. And November 2022.

During the reference months of 2023, an average of about 220,500 barrels of fuel oil were used per month, so adding the December data, which has not yet been reported, annual consumption would kick off in 2023 with a use of about 2.65 million barrels. Might be possible. That means approximately 435 thousand barrels more than in 2022.

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Diesel consumption made record in 2023!

The third fuel with the largest increase in consumption was diesel, which is mainly used by cargo and passenger transport vehicles. BCN figures show 5.15 million barrels were consumed between January and November 2023.

The volume used in the 2023 reference period is 15.2 percent more than the 4.47 million barrels used in the same months of 2022, and a record as diesel consumption exceeded the 5 million barrel barrier for the first time.

An average of 406,800 barrels of diesel were used per month; Therefore, adding the November data that has not yet been published by BCN, total consumption in 2023 could be around 5.56 million barrels. Regarding price, the fuel price bulletin published by the Central American Hydrocarbon Cooperation Committee (CCHAC) of the Central American Integration System (SICA) reports that the average price of diesel in Nicaragua is $4.46 per gallon, up from just $4.61 . In Costa Rica.

The diesel price reported by CCHAC in its bulletin for the first week of February 2024 is the same as that published by the Nicaraguan Energy Institute (INE) in its report. 43.20 cordoba per liter, which is equivalent to 163.51 cordobas per gallon ($4.46 at the official exchange rate). This price has been stable since the first week of April 2022, i.e. almost two years ago, when amid the rise in the international price of oil, Daniel Ortega ordered the stabilization of fuel prices to benefit consumers. ,

Most expensive fuel in the region

Meanwhile, the region’s cheapest diesel is purchased in Panama, with an average price of $3.45 per gallon and the same is true for the rest of the fuels. According to the CCHAC bulletin, the only country in the region that maintains diesel subsidies is the Dominican Republic.

The only ones with a 5.5 percent increase in consumption were regular and super gasoline, which BCN reports together. In the 2023 reference period, 3.04 million barrels of gasoline were consumed, up from 2.88 million barrels used between January and November 2022. On average, 276,500 barrels of gasoline were used per month, so final consumption will end in 2023. About 3.27 million barrels.

The CCHAC fuel price bulletin indicates that “Nicaragua has presented uniform prices since February 27, 2022 and has the highest prices in the region, at $5.06 per gallon for super gasoline and $4.94 for super gasoline. Like diesel, The prices reported by CCHAC in its bulletin for the first week of February 2024 coincide with the INE weekly monitoring, which reports 47.80 cordobas per liter for regular gasoline, 180.92 cordobas per gallon ($4.94 for change); and super. 48.98 cordobas per liter for gasoline, 185.38 cordobas per gallon ($5.06 at the official exchange rate). Like diesel, gasoline prices have also been stable for about two years.