How Much Does Gas Cost in Peru
If you’re an Expat contemplated getting your own car or a tourist considering renting one while visiting Peru, you’ve probably wondered: How much does gas cost in Peru? And why does the price fluctuate the way it does? Let’s break it down.
Current Gas Prices in Peru And Regionally (2025)
As of February 2025, the average price of gasoline in Peru is around S/20.50 per gallon (approximately $5.50 USD per gallon). This is higher than in previous years, reflecting global oil market changes and domestic policies. For comparison:
United States: Around $3.30 per gallon
Ecuador: Around $2.20 per gallon (due to government subsidies)
Chile: Around $5.80 per gallon
How the Price of Gas is Determined
To start let’s be clear that when we say “gas,” we mean good old fashioned gasoline, not liquefied petroleum gas (GLP) or natural gas (GNV), which are also used for vehicles in Peru.
Like everywhere else, gas prices in Peru depend on crude oil costs, but they don’t always rise and fall in sync with the global market. Yet in Peru when oil prices jump or sink wildly the price here rarely follows suit.
So what is excatl;y going on with the price of gas in Peru?
The answer lies in government taxes, regulations, and price stabilization mechanisms that prevent sudden price spikes or drops.
How Taxes Affect the Cost of Gas in Peru
Taxes and Government Price Controls
Peru Levies 3 taxes on your gas.
Excise Tax (ISC – Impuesto Selectivo al Consumo) – A flexible tax that helps stabilize prices.
General Sales Tax (IGV – Impuesto General a las Ventas) – A fixed 18% tax.
Municipal Tax (Impuesto al Rodaje) – A smaller road-use tax
The ISC tax is key to keeping prices steady. When oil prices drop, the government raises the ISC to prevent dramatic price decreases. When oil prices rise, they lower the ISC to cushion the impact on consumers. This keeps prices relatively stable, avoiding drastic swings.
Why the Gas Cost in Peru Matters
In neighboring Ecuador, recent subsidy cuts led to nationwide protests. Just a few years ago, Ecuador had some of the cheapest gas in South America—around $1.50 per gallon—but after subsidy reductions, prices surged, causing major political unrest. Similar issues occurred in Chile, where a simple public transit fare increase led to riots in Santiago.
Peru has avoided such crises by keeping fuel prices relatively steady. Over the past decade, gas prices have hovered around S/18 to S/21 per gallon ($4.80–$5.60 USD), minimizing sudden shocks to consumers.
Want to Avoid High Gas Costs? Take a Taxi Instead
If you’d rather not worry about gas prices, toll fees, or parking, booking a taxi might be the better option. At Gringo Taxis, we offer reliable airport transportation at fixed prices—so you never have to stress about fuel costs.