Despite a recent price reduction of 270 guaraníes (approximately 4 US cents) in fuel by Paraguay's state-owned oil company Petropar, a surge of around 500 guaraníes (approximately 7.5 US cents) in liquefied petroleum gas (LPG) prices is causing alarm among the working class, particularly for the popular public markets and small eateries (copetines) that serve as their primary dining options. Concerns are mounting over potential food price hikes.
According to a report by the local newspaper Última Hora, a female cook operating a food stall in a public market lamented, "The price of a 13kg gas cylinder has risen from 110,000 guaraníes a month ago to 120,000 guaraníes now." She added, "The gas supplier informed us about the price increase, but I didn't follow the news closely enough and only realized the price had already gone up belatedly."
Regarding the prices of the food sold at her eatery, she stated, "Although the cost of ingredients has increased, we can't significantly raise prices." She continued, "We are considering increasing the price per plate by around 1,000 to 2,000 guaraníes, but if we raise prices too much when salaries aren't increasing, I worry that customers will stop coming. Customers ask me, 'Mrs. Mari, what are we going to do now?' Everything is going up, and we've barely been managing so far," she expressed, highlighting the difficulties.
Another restaurant owner stated that they currently use gas as their main fuel source. While they have an electric fryer and an induction range, they explained, "We have no choice but to use gas due to its heating power," emphasizing the limited fuel options available.
They also voiced concerns about the burden of raising food prices. "We recently increased the prices of purée and milanesa once, and raising prices again would be too much of a blow to our customers," the owner worried.
Consequently, public markets and small eateries are reportedly seeking survival by absorbing the increased costs themselves or reducing food portions instead of raising prices. One restaurant owner shared, "Instead of suddenly raising prices, I'm thinking of trying to manage by gradually reducing the portion sizes."
This LPG price hike, occurring despite Petropar's fuel price reduction, is expected to have a considerable negative impact on the working-class economy. It will particularly burden those who rely on affordable meals.
Experts warn that this gas price increase could lead to a "price inflation domino effect," where rising food prices contribute to an overall increase in the cost of living. With existing high inflationary pressures due to international oil price volatility and exchange rate fluctuations, the fuel price increase could further exacerbate the financial hardship faced by ordinary citizens.
The Paraguayan government is reportedly grappling with measures to address this gas price increase. Options such as additional fuel price stabilization policies or energy voucher support for low-income households may be discussed to ensure the stability of citizens' livelihoods.
Meanwhile, Petropar has yet to issue an official statement regarding the gas price increase. The lack of information about the reasons behind the increase and future price outlook is further amplifying market uncertainty.
Ultimately, this gas price increase is likely to directly impact the cost of food for the working class and act as a factor exacerbating inflationary pressures across the Paraguayan economy. Swift and effective countermeasures from the government are urgently needed.
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