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Oil Price Hike Affects Purchasing Power in Panama: Poll

Posted on: Saturday, 17 September 2005, 09:00 CDT

Oil price hike affects purchasing power in Panama: poll

PANAMA CITY, Sept. 16 (Xinhua) -- Surging oil prices have affected the purchasing power of Panamanians in the global market, according to a poll released Friday by La Prensa daily.

According to the poll, more than half of consumers think their ability to acquire basic products has been affected.

Experts said decades of using the US dollar as legal tender gave stability to the Panamanian economy, but the situation changed with the loss of value in the US currency and the increase in oil prices.

This week, the price of a gallon of gasoline rose 45 cents, and diesel 16 cents in Panama, which is a net importer of fuel.

Taking the increases into account, a gallon of gasoline now costs 3.40 dollars, and diesel 2.43 dollars in the capital of Panama City.

Taxi drivers and other car-owners took to the streets on Thursday to protest the oil price hike in Panama. The protesters blocked traffic with their vehicles in different localities of the country, demanding that the government eliminate gasoline taxes.

The Union of Panama Industrialists requested Panamanian President Martin Torrijos to join the global demand against the increase in fuel prices.

They said this situation hampers Panama's economy, a country of 3.1 million people with one of the most marked polarization between the rich and the poor in the Americas.

The government recommended that people to cut down on their use of automobiles by carpooling and using other methods of transportation.

Source: Xinhua News Agency - CEIS

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