Honduras Watchdog: Fuel Protests Hurt Trade as Subsidy Tops US$48 Million

By The Rio Times | Created at 2026-10-02 08:21:52 | Updated at 2026-10-03 10:51:51 1 day ago

The LatAm Brief

One email, every weekday morning. What moved in Latin American markets, politics and expat life.

Yesterday’s subject line: “Banxico has missed its target for 75 months in a row”

Free. We send a confirmation link first — nothing arrives until you click it. Unsubscribe with one click in any edition. If you stop opening us for 30 days we stop sending by ourselves, as we assume the interest is no longer there. See our privacy policy. We never share your email.

HONDURAS · ECONOMY

Key Facts

  • —The country Honduras imports all the fuel it uses, so world oil prices reach its pumps quickly. Its north, around San Pedro Sula and the port of Puerto Cortés, is its industrial and trading hub.
  • —The background Fuel prices have risen for weeks. Residents have blocked roads in the north, including the route from San Pedro Sula to western Honduras.
  • —Why now Talks in Congress have produced no deal. On 1 October lawmakers opened a new technical table with hauliers, business and ministries.
  • —What happened On Thursday 1 October 2026 the civil-society group ASJ warned that the protests now hurt the sale and delivery of goods.
  • —The numbers The fuel subsidy has cost more than L1.3 billion (about US$48 million), against L650 million (about US$24 million) budgeted for 2026.
  • —What it means for you Road travel in the north can meet sudden blockades. Local media advise alternative routes while protests last.
  • —Still open Whether Congress cuts fuel taxes, and how large the economic damage is. No one has published a loss estimate.

Fuel-price protests in northern Honduras now hurt the economy beyond transport, a civil-society group warned on Thursday 1 October. The cost, it said, ends up with ordinary Hondurans.

Free daily brief — no card needed

Get every Honduras story in one morning email

We build you a personalized brief around the topics you follow — free for 7 days. Love it? Your first month after that is US$1.

Yes, email me my free daily brief — I can unsubscribe any time.

The warning came from the Association for a More Just Society (ASJ), a Honduran group that works on justice and transparency. It came as Congress opened new talks with hauliers, while the state’s fuel subsidy has already doubled its budget.

 warehouses at a former industrial park in Choloma, in the industrial north around San Pedro SulaWarehouses at the former Galaxy industrial park in Choloma, Cortés, in Honduras’s industrial north, January 2014. Photo: Hector Sosa/Wikimedia Commons (CC BY-SA 3.0)

One-stop reference

Company Intelligence

Every listed company in Latin America — financials, ownership and structure for 1,450+ companies across 26 exchanges, in one place.

Browse the directory →

What the watchdog said

José Perdomo, a legal officer at ASJ, said the problems moving around the north are spreading, according to the newspaper El Mundo. They affect “distribution, marketing, purchase, sale and delivery of products” across the country, he said.

Those disruptions, he argued, are passed on to the population. He did not put a figure on the damage.

Perdomo called for an agenda of priorities to deal with the country’s several crises at once. Congress, he said, should focus on issues that hit citizens directly and avoid what he called populist measures.

Any solution must meet legal requirements and have institutional backing, he added, so that it lasts.

Where the protests stand

On 29 September residents around Cofradía blocked the highway between San Pedro Sula and western Honduras, El Mundo reported. They used heavy vehicles, buses, stones and tyres.

They said constant price rises were eating into household budgets.

San Pedro Sula is the country’s main industrial city, and nearby Puerto Cortés is its main port. Delays there ripple through supply chains.

On 29 September Anabel Gallardo, who heads the private-sector council Cohep, proposed a reserve fund to soften fuel prices. She warned that a shortage would deepen the crisis.

What Congress is doing

Earlier talks in Congress ended without a deal on fuel taxes on 30 September. On 1 October two committees opened what they called the first inter-institutional technical table, starting with cargo hauliers.

The transport authority, Cohep, the fuel distributors’ association and the energy and finance ministries were invited. Bus operators are due to join later.

Erik Alvarado, who chairs the hydrocarbons committee, said fuel subsidies have cost more than L1.3 billion (about US$48 million). The 2026 budget had set aside L650 million (about US$24 million).

Energy Minister Eduardo Oviedo said rising fuel costs are also straining public finances. He said the meetings with transport representatives would continue.

What comes next

The technical table will continue with transport groups, and any tax change would need a vote in Congress. Lempira amounts here use the Central Bank of Honduras reference rate of 1 October, 26.90 lempiras per US dollar.

The ASJ warning is a qualitative assessment, not a measured loss, and it does not mean supplies have run out. It does show the dispute moving from the pump to the wider economy.

Frequently Asked Questions

What is ASJ?

ASJ, the Association for a More Just Society, is a Honduran civil-society organisation. It works on justice, transparency and public policy.

Why are fuel prices so high in Honduras?

Honduras imports all the fuel it uses, so rises in world oil prices pass through to its pumps. The government subsidises part of the increase, at a growing cost.

Is it safe to travel in northern Honduras during the protests?

The protests have mainly taken the form of road blockades. Travellers should expect delays and check routes, especially between San Pedro Sula and western Honduras.

Sources: El Mundo (Honduras), 1 October 2026; El Mundo (Honduras), Congress technical table, 1 October 2026; El Mundo (Honduras), Cofradía blockades, 29 September 2026; El Mundo (Honduras), Cohep, 29 September 2026; Central Bank of Honduras, reference exchange rate, 1 October 2026.

The Rio Times · Power Map

See who really holds power in Latin America

Click to open the Power Map →

Read Entire Article