Peruvian law students from the Facultad de Derecho, Universidad Nacional de San Antonio Abad del Cusco (UNSAAC), report for JURIST on legal events in and with an impact on Peru. They all come from the Centro de Investigación de los Estudiantes de Derecho (CIED), a research center of the UNSAAC Faculty of Law, dedicated to the dissemination of legal information and the improvement of legal culture through study and research, promoting critical and reflective debates to contribute to the development of the country. Inti Daniela DInaz Uscamayta is a law student at UNSAAC and a member of CIED. She submits this shipment from Cusco, Peru.
In Peru, most households and businesses use stoves that run on 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 Peru experienced a shortage of GLP and GNV. The reason for this was an accident in the pipeline for the transport of unprocessed gas in the Megantoni district of Cusco, in which a gas leak interrupted the main supply to almost all regions of Peru. The final destination of the damaged pipeline was Piura, home of the plant responsible for processing the gas into GNV and/or GLP for nationwide distribution.
The explosion and fire caused extensive property damage in the Megantoni district, which was eventually brought under control, according to Transportadora de Gas del Perú (TGP), the company responsible for the gas transportation pipeline. The incident led to an almost immediate increase in GNV and GLP prices, which continue to rise daily, which in turn created a crisis for citizens trying to supply their homes and cars, with endless queues for a gas cylinder or a gallon of fuel.
The nationwide shortage of GNV has led to gas stations increasing fuel prices almost daily, as many of them over time ran out of stock or only preferred vehicles that were not intended for private use. While there are other options for getting fuel to Peru, global tensions with Iran have led to unexpected delays. Delays have exacerbated the situation, forcing many citizens to buy gas cylinders or fuel at inflated prices.
Last week, many taxi drivers and city transit companies increased fares and even threatened a nationwide strike. They demanded government subsidies to continue operations and allow passengers to travel normally. Likewise, many passengers expressed their dissatisfaction with the fare increase, which is why students from UNSAAC University took to the streets on March 11 to peacefully demonstrate against this increase affecting all passengers. The price of GLP per cylinder has also risen sharply across Peru, especially in the capital, where prices have doubled in several districts. As a result, the cost of daily menus has also increased, although there are no longer many guests willing to pay the difference from the previous price.
Nevertheless, Prime Minister Denisse Miralles, under recently elected Peruvian President José María Balcazar, told the press: “There are enough fuels of all kinds: GLP, diesel, everything. That’s why there should be no increase in prices. Prices go up when there is a shortage, but that is not the case; we have hoarding and speculation.” Most citizens do not support their opinion as prices continue to rise and they see no signs from the government that the situation will stabilize soon. What is certain is that repairs to the affected section of the pipeline will be carried out quickly so that the gas flow can reach its destination again, and that the cause of the incident will be assessed and investigated by the Peruvian Energy and Mining Investment Regulatory Authority (Osinergmin).
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