US embassy cable - 05TEGUCIGALPA2457

C O N F I D E N T I A L TEGUCIGALPA 002457 
 
SIPDIS 
 
STATE FOR EB/IFD, WHA/EPSC, INR/IAA, DRL/IL, AND WHA/CEN 
STATE FOR CA/OCS/ACS/WHA AND DS 
TREASURY FOR DDOUGLASS 
STATE PASS AID FOR LAC/CAM 
DOL FOR ILAB 
 
E.O. 12958: DECL: 12/06/2015 
TAGS: ASEC, CASC, ECON, EFIN, ELAB, ENRG, EPET, HO, PGOV 
SUBJECT: HONDURAS: FINAL FUEL REPORT DELAYED; STRIKES 
THREATENED 
 
REF: TEGUCIGALPA 02194 
 
Classified By: EconChief PDunn for reasons 1.5 (B and D) 
 
 1. (U) Presentation of the third and final report on fuel 
pricing by the Honduran "Notables Commission" (a select 
commission of Honduran citizens convoked by Congress to 
recommend reforms for gasoline imports pricing) has 
reportedly been delayed until Wednesday, December 7, when 
commission head Cardinal Oscar Andres Rodriguez is expected 
to return from outside the country.  The report, drafted by 
an independent U.S. citizen consultant (reftel), examines the 
pricing formula that the GOH uses to set prices and margins 
throughout the fuel distribution process.  The Honduran 
Congress will be responsible for implementing the report,s 
recommendations. 
 
2. (C) According to Rosanna Guevara, a local journalist who 
recently resigned from the Notables Commission, the report is 
very well balanced, but its release had been deliberately 
delayed until after the tightly contested presidential 
elections.  &I resigned because the process has become too 
political.  The report has been ready for at least a week,8 
she said.  She is also concerned that the report might not be 
published in full, with only summary information released to 
the public.  &If it comes out now, it would be very well 
received by all parties involved.  With more delay comes more 
pressure, which could result in strikes or demonstrations,8 
she said. 
 
3. (C) Gasoline importers apparently will suffer most from 
the report,s recommendations.  Mario del Cid, representative 
of the Honduran Petroleum Industry group, has read the 
report,s executive summary.  &The importers had the 
smallest margin to begin with, and they will receive the 
biggest cuts,8 he said.  The consultant,s recommendations, 
which will likely include establishing a GOH unit to buy 
fuel, will cut directly into the importers profits.  &We,ve 
had the least input into this process and we,ll be the ones 
to suffer the most.8 At least one U.S. importer is 
considering pulling out of the country if the report,s 
recommendations are implemented, according to del Cid. 
 
4. (C) The Honduran Patriotic Coalition of Solidarity, which 
represents about 60 organizations mainly involved in fuels 
transportation, has threatened to strike on Wednesday, 
December 7, if the report does not come out by midnight on 
December 6.  However, Mauricio Aguilar, Director of 
Transportation for SOPTRAVI (the Honduran Transportation 
Agency) said to EconOff late Tuesday, December 6 that an 
agreement has been reached between the Coalition and the 
Notables Commission to wait until Thursday, December 8 to 
release the report. 
Ford