Guatemala Fuel Tax Exemption Takes Effect: Premium Petrol Falls to US$4.74 a Gallon
The Guatemala fuel tax exemption took effect on 1 October, cutting premium petrol to about US$4.74 a gallon until December. What drivers need to know. The post Guatemala Fuel Tax Exemption Takes Effect: Premium Petrol Falls to US$4.74 a Gallon appeared first on The Rio Times .
On 1 October 2026, Guatemala's fuel tax exemption took effect, reducing premium petrol prices to about US$4.74 per gallon. Decree 22-2026 suspended two fuel taxes until 31 December. President Bernardo Arévalo signed the law on Tuesday, but vetoed a rival bill that would have capped pump prices. The energy ministry set reference prices for premium petrol at Q36.24 (US$4.74) a gallon, regular petrol at Q34.96 (US$4.58) a gallon, and diesel at Q42.94 (US$5.62) a gallon, given the exchange rate of 7.64 quetzales to the dollar on 1 October.
The exemption lifted the value-added tax (IVA) and removed the IDP levy, resulting in savings of Q9.05, Q8.33, and Q6.45 per gallon for premium petrol, regular petrol, and diesel, respectively. Energy Minister Erwin Barrios said reference prices may fluctuate with global market conditions and distance from the capital. The law requires the tax benefit to be passed to the final consumer by 1 January 2027.
Arévalo refused to sign Decree 21-2026, which aimed to cap diesel and regular petrol at Q39 (US$5.10) and premium at Q41 (US$5.37). The government argued that the subsidy combined with tax cuts could strain the national budget. The price cap now returns to Congress, which approved it on 8 September with 130 votes. The tax exemption partially alleviates some concerns, but the government admits it does not fully offset the global price shock.
Drivers can verify the taxes they paid on their receipts from 1 October. The energy ministry publishes prices for each station online for comparison.
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