How much does gas cost in Peru, and is it worth driving here as a tourist or expat?
Note: This page is about gas prices in Peru (the country), not Peru, Indiana, USA.
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 (August 2025) and in the Region
Average: S/4.10 per liter (~$1.10 USD per liter / $4.10 USD per gallon)
Regional Comparisons:
• U.S. – ~$3.30/gal
• Ecuador – ~$2.20/gal (subsidized)
• Chile – ~$5.80/gal
NOTE: Prices are based on Lima averages and can vary slightly depending on the region.
Gas is Expensive. Tickets Are Worse.
Between S/20+ per gallon fuel and strict traffic enforcement, renting a car in Peru can cost far more than you think. Avoid the hassle and ride with Gringo Taxis, your safe, fixed-price airport transfer.
Peru’s Gasoline Grades, A Missing Middle That Hurts the Poor
Until recently, Peru offered multiple fuel grades (84, 90, 95, 97, etc.), just like you’d expect in most developed countries. But as of 2023, the government eliminated the “mid-grade” option entirely, consolidating fuels into just two categories:
Regular: A mix of 84 and 90 octane
Premium: A mix of 95, 97, and 98 octane
The official reason was to “simplify the supply chain, improve environmental standards, and align with modern vehicles.”
But here’s the problem:
For working-class drivers, who usually own older cars designed for 90 octane, this change is a raw deal. They’re now forced to buy a “regular” mix that can include 84 octane, fuel that burns dirtier, is less efficient, and can even damage engines over time.
Meanwhile, wealthier drivers of modern vehicles are funneled into “premium,” where 95-98 octane blends actually deliver cleaner, more efficient combustion for their cars, essentially giving them better quality fuel at a fairer value.
In effect, the policy punishes the poor and protects the rich. Regular drivers are stuck paying over the odds for a low-quality blend, while premium drivers get a break.
In almost any developed country, scrapping the mid-grade would be unthinkable. It’s like a grocery store deciding to stop selling medium sizes, leaving everyday people with only “small and cheap but low-quality” or “large and expensive but better value.”
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 excatly 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.