June 2026 transfers totaled S/232.77 million, down S/29.50 million from May’s S/262.27 million. Monthly variations correlate directly with fiscalized hydrocarbon production levels, creating payment fluctuations throughout the year tied to extraction activity. Cusco received S/173.66 million in June, maintaining its dominant position, while other regions recorded proportionally smaller amounts ranging from S/30.34 million for Piura to S/0.36 million for Puerto Inca.
The canon mechanism allocates revenues to regional governments, municipalities, national universities and state technical institutes from income generated by hydrocarbon exploitation. Gas canon comprises 50% of income tax, 50% of royalties, and 50% of state participation in service contracts. Oil canon and sobrecanon consist of 12.5% of production value obtained by the state from petroleum, associated natural gas and condensate extraction in covered jurisdictions. Puerto Inca operates under differentiated rules with canon set at 10% of hydrocarbon production value from that zone.
Legal framework mandates that canon resources finance or co-finance infrastructure projects with regional or local impact, plus productive investment for sustainable development in resource-extracting communities. Universities and institutes must direct canon funds exclusively toward scientific and technological research supporting regional development. Since 1993, cumulative hydrocarbon canon and sobrecanon transfers nationwide reached S/47.332 billion, with 2025 annual payments totaling S/2.200 billion.
The number of national universities receiving direct hydrocarbon canon transfers doubled from eight to sixteen institutions starting April 2026, extending coverage under Law 27506. January-April 2026 university transfers totaled S/33.6 million, distributed under the Invierte.pe system requiring funds flow to investment projects rather than current expenditures.
This article was curated and published as part of our South American energy market coverage.
