Gas prices in Panama City continued their steep decline this week as the price of Regular (91 Octane) dropped over 20 cents a gallon to land an average of about $2.81 per gallon. Over the last couple of days, gas prices at about a dozen different stations ranged from 0.734 to 0.748 cents per liter. Last week, most stations in Panama City were spotted with prices around $0.808 per liter. There are 3.79 liters in a gallon.
Gasoline prices have been dropping around the world after oil began its steep decline, dropping from around $100 per barrel to less than $60 per barrel, with the possibility of future price drops. Panama appeared to take a little while to appropriately adjust prices in response to falling oil prices, remaining near highs after prices began dropping in the United States and elsewhere. However over the last few months, prices have began to quickly adjust, dropping from a high of around $1.09 per liter to their current prices.
Gasoline prices in Panama continue to be slightly higher than the US, where the average price for gasoline currently sits at $2.55. However, gas prices here compare favorably to most of the rest of the world, particularly Western Europe. Panama’s gas prices also continue to be some of the lowest in Latin America (with the exception of Venezuela and a few other countries).
If global oil continues to fall as many analysts predict, expect gas prices in Panama to continue to drop. This is good news for Panamanians who will have a little extra money in their pocket this holiday season. Panama does not currently drill for its own oil, so it should not see negative economic consequences from the drop in oil prices.