Puerto Rico Senate Vice President Carmelo Ríos asked the Secretary of the Department of Treasury (Hacienda) to suspend the excise tax (arbitrio) on diesel fuel, citing rising diesel prices driven by international events. He invoked subsections (a), (f) and (g) of Section 3020.07 of Act 31-2013, the Internal Revenue Code for a New Puerto Rico, arguing that revenue collection targets set in the Puerto Rico government's Fiscal Plan have already been reached.
Ríos noted diesel prices at the pump now exceed $1.55 and said suspending the tax would ease costs across the distribution chain, since trucks that transport goods run on diesel. He said the excise tax on fuel under Act 31 generated $141.6 million in fiscal year 2023, representing 23.8% of total revenue from petroleum products.
Ríos said the diesel price increase is an international problem, pointing to England's consideration of rationing the fuel, and noted U.S. diesel costs rose 28% over the past three months, with Puerto Rico's island status raising transportation costs further. He cited gasoline pricing factors: crude oil cost (53%), taxes and contributions (17%), transportation and marketing (18%), and refining (12%). Ríos said the measure could be implemented immediately.