Treasury: Eliminating ‘crudita’ does not guarantee a 36.9-cent-per-gallon drop

By THE STAR STAFF

The island Treasury Department warned on Tuesday that eliminating the oil excise tax known as the “crudita” does not guarantee that consumers would see a reduction of 36.9 cents per gallon, while the Fiscal Agency and Financial Advisory Authority (AAFAF by its initials in Spanish) maintained that the revenues from the tax are now part of the General Fund’s recurring income.

“The $15.50-per-barrel levy mathematically equates to approximately 36.9 cents per gallon for products subject to all its components,” stated Yoadis Rodríguez Berríos, representing the Treasury, during a public hearing held by the Senate Committee on Finance, Budget, and PROMESA.

However, Rodríguez Berríos maintained that eliminating the excise tax does not mean that amount would automatically be reflected in the price paid by the consumer.

The savings “would depend on market conditions, transportation and distribution costs, and how much of the reduction is passed on to the consumer,” she said.

The committee, chaired by Sen. Migdalia Padilla Alvelo, began reviewing Senate Resolution 461 -- sponsored by Sen. Wilmer Reyes Berríos -- which calls for an investigation into the “crudita,” its economic impact, and its relationship to the government’s fiscal obligations.

The Treasury official noted that revenues historically linked to the Highways and Transportation Authority (ACT) and the Infrastructure Financing Authority now flow into the General Fund and help cover the cost of government services.

The agency reported that the Petroleum Products category generated some $466.7 million during fiscal year 2026, but cautioned that this figure includes other collections on gasoline and diesel and does not represent revenue solely from the “crudita” (the additional excise tax on crude oil and derivatives).