How Affordable is Gas in Latin America?

Driving turns out to be very expensive in Nicaragua. The average citizen has to spend more than 12% of daily wages to buy one liter of gas.

In the US, gas prices can cost a president’s approval rate to drop. In Latin America, the consequences are more severe. For example, in Venezuela in the 1980s, riots resulted in more than 1,000 deaths amid government attempts to raise prices. This year, Nicaragua, Guatemala, and Mexico citizens have gone out to the streets to protest rising prices.

The truth is that there’s little that most administrations can do to battle market forces. A barrel of oil costs 40% more today than it did at the beginning of the year. There are some exceptions like Bolivia, which can freeze prices and keep gasoline affordable for its citizens through state-owned oil companies. Bolivian gas has stayed frozen at about $0.55 per liter since 2013 (world average currently sits at $1.23).