QUITO, Ecuador – The Latin American and Caribbean Energy Organization (OLACDE) says the period of inflationary relief experienced by the energy sector in Latin America and the Caribbean (LAC) has come to an end and that as of June this year, gasoline and diesel prices remained above the levels recorded before the Middle East conflict.
“After reaching its lowest level of the period under analysis—close to zero—in February 2026, regional energy inflation began to accelerate steadily from March onward, driven by escalating geopolitical tensions in the Middle East and the Strait of Hormuz,” OLACDE said in its latest report released here.
According to the international group made up of 27 member countries in Latin America and the Caribbean., the region’s year-on-year energy inflation jumped to 2.12 per cent in March, increased to 4.52 per cent in April, and climbed further to 6.41 per cent in May 2026.
“The May figure is more than three times the level reported just two months earlier,” said the intergovernmental public body of cooperation, coordination and technical advisory, established in 1973.
It noted that in contrast, the overall consumer price index (CPI) in LAC remained comparatively stable, posting moderate increases over recent months and closing at 4.13 per cent in May.
“This divergence reflects the fact that the broader inflation index is better able to absorb external shocks through its diversified basket of goods and services, whereas the energy sector is directly exposed to global price disruptions.”
OLACDE said that the international price surge continues to put pressure on import, refining, transportation, and distribution costs across the region. As a result, retail fuel prices remain above the levels recorded before the Middle East conflict:
It said that the average price for gasolene remains 16 per cent above its reference level, demonstrating greater downward price rigidity, while diesel prices are still 13 per cent higher than the reference level, despite a slight partial correction observed in recent weeks.
OLACDE notes that upward pressure on domestic fuel prices persists even as global crude oil markets begin to ease.
“The transmission of this international shock to retail fuel prices has been neither immediate nor uniform, owing to factors such as inventories purchased at previous price levels, taxation schemes, fuel subsidies, and national price stabilization mechanisms, “it added.
