The fallout has most heavily impacted over 335,000 light vehicles running on Gas Natural Vehicular (GNV), primarily taxis and motorcycles, which have been barred from accessing GNV supplies. These drivers are forced to switch to gasoline, which is priced up to 70% higher than gas, driving operational costs from 20 soles to over 70 soles daily, effectively tripling fuel expenses. The refusal of passengers to accept fare hikes further strains the transport sector’s profitability.
Beyond transportation, nearly 1,000 energy-dependent companies have faced operational restrictions and switched back to costlier and more polluting alternatives such as diesel and LPG. Thermoelectric plants reliant on natural gas were incapacitated, causing wholesale electricity prices to spike from $30-40/MWh to above $200/MWh, compelling activation of high-cost diesel backup generators to prevent blackouts.
The government, through Minem and Osinergmin oversight, is coordinating repair efforts with the Camisea consortium operator, who targets service restoration within 14 days. However, logistical challenges due to the pipeline’s remote jungle location may delay repair completion. Meanwhile, enforcement actions against fuel price speculation at service stations are underway to maintain market stability during the crisis.
The situation underscores Peru’s vulnerability stemming from the concentration of its energy supply on aging infrastructure and limited gas reserve exploration. Geopolitical tensions in global energy markets, such as regional instability near the Strait of Hormuz, compound risks to fuel availability and pricing. This crisis is likely to accelerate discussions on diversifying Peru’s energy matrix and strengthening infrastructure resilience.
This article was curated and published as part of our South American energy market coverage.
