Ecuador.- Energy inflation in Latin America and the Caribbean reached 8.03% year-on-year in June, its highest level in 2026, driven mainly by rising fuel prices and the war in the Middle East, the Latin American and Caribbean Energy Organization (Olade) reported this Saturday.
This figure also exceeds the total inflation of 4.49%, which for Olade indicates that energy costs “are rising at a much faster rate than the rest of the components of the consumer price index (CPI) basket“.
The organization, based in Quito, explained that the increase is “linked mainly to geopolitical tensions in the Middle East” and to the “risks associated with oil supply, which has increased the costs related to importation, refining, and transportation“.
“This effect has transferred to domestic markets, especially regarding fuels: in June, the regional average price of gasoline reached its highest level of the first half of the year,” the organization added in a statement.
However, Olade pointed out that the impact has not been transmitted immediately or symmetrically to consumers, since during the first weeks of the U.S.-Iran conflict, the price of oil increased by around 60%, while fuel prices rose by almost 20%.
Although -subsequently- the value of crude oil retreated from its maximum values, the increase in fuel prices persisted in the region, “evidencing a gap between the evolution of international prices and the values paid in domestic markets“, adds the informative note.
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The organization also highlighted variations between countries, as subsidies, controls, and stabilization mechanisms have been implemented that allow some markets to maintain relatively low prices.
Likewise, he added that other nations face higher values, due to their price formation structures and higher logistical and operational costs.
Olade stated that the persistent high fuel prices extend their impact beyond the energy sector, as they increase costs associated with mobility and freight transport; they affect household expenses and influence production costs.
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The Strait of Hormuz, between Iran and Oman, is one of the world’s main routes for oil and gas transport and has become one of the main flashpoints in the conflict between the United States and Iran.
