Business

Will conflict affect Costa Rican gas prices?

Posted: Friday, February 17, 2012 - By Adam Williams
Expert say U.S. and European sanctions against Iran will not directly affect Costa Rica but if conflict continues gas prices could rise.
Gas Prices 1
Mónica Quesada

While analysts expect world fuel prices to rise due to ongoing sanctions against Iran, Costa Ricans can expect only a moderate, long-term hike. The United States accounted for 58 percent of Costa Rican oil imports in 2010.

Iran has staked its claim as international pariah during the first six weeks of 2012. Given the country’s decision not halt a nuclear development program – which the government claims is for  peaceful purposes – the international community has responded with a series of steps to pressure Iran into cooling its nuclear ambitions. 

Last week, U.S. President Barack Obama signed an executive order to sanction transactions from the Iranian Central Bank.

In late January, the European Union did the same, as well as adopting an embargo to cease new oil imports from Iran. These sanctions followed Iran’s threat in early January to close the Strait of Hormuz, a vital oil transportation channel off the east coast of the country where 20 percent of the world’s oil exports pass.

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Comments

MR CHELEY, DO YOU UNDERSTAND THAT THE OIL COMPANIES OWN THE OIL THEY DRILL? THIS MEANS THEY MAY SELL IT ON THE OPEN MARKET TO THE HIGHEST BIDDER, WHICH IS PROBABLY NOT GOING TO BE COSTA RICA. SO ALLOWING OIL COMPANIES TO DRILL IN COSTA RICA WILL, AS HISTORY HAS PROVEN, CREATE HUGE PROBLEMS FOR COSTA RICA WITH LITTLE BENEFITS.
Gas price are going to go up fast its to drill in Costa Rica

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