Peruvian law students from the Facultad de Derecho, Universidad Nacional de San Antonio Abad del Cusco (UNSAAC), are reporting for JURIST on law-related events in and affecting Perú. All of them are from Centro de Investigación de los Estudiantes de Derecho (CIED), a research center in UNSAAC’s Faculty of Law dedicated to spreading legal information and improving legal culture through study and research, promoting critical and reflective debate to contribute to the development of the country. Inti Daniela Díaz Uscamayta is a law student from UNSAAC and a member of CIED. She files this dispatch from Cusco, Perú.
In Perú, most households and businesses use stoves fueled by liquefied petroleum gas (GLP), and in the transportation sector, there is a clear preference for compressed natural gas (GNV) over other fuels such as gasoline or diesel. However, in March, Perú experienced a shortage of GLP and GNV. This was due to an accident in the pipeline transporting unprocessed gas located in the district of Megantoni in Cusco, where a gas leak cut off the main supply to almost all regions of Perú. The final destination of the damaged pipeline was Piura, home to the plant responsible for processing the gas into GNV and/or GLP for distribution across the country.
The explosion and fire caused major property damage in the district of Megantoni, which was eventually brought under control according to Transportadora de Gas del Perú (TGP), the company responsible for the gas transportation pipeline. The incident resulted in an almost immediate rise of GNV and GLP prices that continue to increase daily, in turn leading to a crisis for citizens as they try to supply their homes and cars, standing in endless lines for a gas cylinder or a gallon of fuel.
The nationwide shortage of GNV has caused gas stations to raise the price of fuel almost daily, as many of them ran out of stock over time or prioritized only vehicles not for private use. While there are other ways for fuel to reach Perú, global tensions with Iran have caused unexpected delays. Delays have exacerbated the situation, forcing many citizens to buy gas cylinders or fuel at exorbitant prices.
Over the past week, many taxi drivers and urban transport operators raised fares and even threatened a nationwide strike, demanding a government subsidy to continue working and allow passengers to travel normally. Similarly, many passengers expressed their disagreement with the fare increase, which is why UNSAAC university students took to the streets on March 11 to march peacefully against this hike that affected all passengers. The price of GLP per cylinder has also risen sharply throughout Perú, especially in the capital, where prices have doubled in several districts. This has also caused the cost of daily set meals to increase, despite the fact that there are no longer many diners willing to pay the difference from the previous price.
Despite this, Prime Minister Denisse Miralles, under Perú’s recently elected President José María Balcazar, stated to the press: “There is enough fuel of all kinds: GLP, diesel, everything. Therefore, there should not be a price hike. Prices rise when there is a shortage, but that is not the case; what we have is hoarding and speculation.” Most citizens do not support her opinion, as prices continue to rise and they see no indication from the government that this situation will stabilize soon. What is certain is that repairs to the affected section of the pipeline are being carried out swiftly so that the gas flow can reach its destination again, and that the cause of the incident is being evaluated and investigated by Perú’s Regulatory Agency for Investment in Energy and Mining (Osinergmin).
