No menu items!

COSTA RICA'S LEADING ENGLISH LANGUAGE NEWSPAPER

HomeTopicsBusinessDivorce trial in U.S. causes cooking gas shortage in Costa Rica

Divorce trial in U.S. causes cooking gas shortage in Costa Rica

It hasn’t quite reached telenovela status but the drama between the once-married owners of a Costa Rican propane supply company is causing a serious crisis for customers in the couple’s home country.

The couple, Miguel Zaragoza and Evangelina López, own Gas Zeta, the largest of Costa Rica’s two private companies authorized to sell propane. But a large chunk of the company’s operations has ground to a halt in recent weeks after a Texas court granted the couple a divorce and ordered a division of assets.

The ensuing legal drama for ownership of Gas Zeta has left its propane customers in Costa Rica — nearly 70 percent of the country — scrambling to find cooking fuel for homes, restaurants, hotels, hospitals, schools and even prisons.

In a news release on Wednesday, López said that the Costa Rican people, just like her, “are suffering because of her husband’s love affairs.”

She also said she requested protective measures from a U.S. judge for her family’s home and assets as “they all are under threat of being seized due to her husband’s actions.”

In an effort to make up for the gas shortage, Costa Rican Environment Ministry (MINAE) officials granted another private company a one-year license to sell cooking gas. The new company, owned by local and foreign investors, began selling propane Wednesday evening.

Environment Minister Édgar Gutiérrez Espeleta said the couple’s problems caused a clash of court rulings in both countries. He explained that when the Texas judicial system sent the divorce papers to Costa Rica, a local family court judge issued preventive measures protecting the López family’s assets. Then Zaragoza’s lawyers filed a counter claim in an administrative court over the company’s rights, and that judge ruled in his favor.

“Both rulings are now being challenged,” Gutiérrez said, “raising uncertainty over an issue that (should be) entirely private.”

The Costa Rican police have even had to get involved. Last week officers carried out an eviction order against employees at some of the company’s plants, which sparked the supply problems.

Representatives of Gas Zeta said last week that they were waiting for the Costa Rican Oil Refinery (RECOPE) to authorize entry for the company’s tankers in order to restart gas distribution as soon as possible. But RECOPE said in a news release that it can’t currently sell propane to Gas Zeta because of the legal uncertainty over the company’s ownership.

Meanwhile, business groups, including the Costa Rican Food Industry Chamber, Costa Rican Chamber of Hotels and the Costa Rican Chamber of Restaurants, warned this week that if the problem persists, many businesses will be forced to halt operations as soon as next weekend.

Trending Now

Costa Rica Faces New Tariff Challenges as Trump Enacts 10% Levy on Imports

President Donald Trump declared a new 10% tariff on all U.S. imports today, just hours after the U.S. Supreme Court invalidated his prior tariff...

Costa Rica Sees 11-Fold Jump in Forest Fires as Dry Winds Fuel Crisis

Firefighters in Costa Rica report a stark increase in forest fires this year, with 33 incidents recorded. This number marks an elevenfold jump from...

Guatemala’s president says state of siege brought gangs under control

Guatemalan President Bernardo Arévalo said Sunday that the 30-day state of siege helped authorities regain control over gang activity after Barrio 18 members killed...

Costa Rica’s Dollar Exchange Rate Hits 17-Year Low

The dollar's exchange rate against the colon dropped further today in Costa Rica's foreign currency market, known as Monex. Data from the Central Bank...

Cuba Postpones Cigar Festival Amid Energy Crisis

Cuban organizers announced on Saturday the postponement of the Festival del Habano, the island’s signature cigar event, as the country deals with a severe...

Restoration of Costa Rica’s Teatro Nacional Paused Amid Claims of Irreparable Harm

Work on restoring the Teatro Nacional, Costa Rica's premier cultural landmark, came to a sudden stop this week after the Sala Constitucional issued a...
L. Arias
L. Arias
Reporter | The Tico Times |
Costa Rica Coffee Maker Chorreador
Costa Rica Coffee Maker Chorreador
Costa Rica Travel Insurance
Costa Rica Travel

Latest News from Costa Rica