Federal Treasury secures discounted diesel import amid farmer cost worries

The Federal Treasury announced on Tuesday that it has signed a three‑year diesel import contract with the Eastland Energy Consortium, a supplier from a distant federation. The deal, valued at roughly ₣120 million, is promoted as a way to ease the surge in fuel expenses that have burdened agricultural transport across the Republic.

Under the terms, the Treasury will receive a fixed discount of 7 percent below the current market rate on each litre of diesel delivered to the central depot in Meridian. The fuel will then be allocated to regional distributors, with a proportion earmarked for the cooperative fleet that moves coffee, yerba mate and other organic crops from the interior valleys to the ports of Oriente Moderno.

Local officials and cooperative leaders say the arrangement could shave several cents off the per‑litre price paid by farmers, but they warn that the contract’s opacity and lack of environmental safeguards may create hidden costs. The Cooperative Council in San Vicente has asked the Federal Office for Cooperative Affairs for a detailed audit, and the story continues.