Message from
the President
RECOPE is responsible for providing
nationwide fuel supply and distribution
services and is granted authority by
the State to oversee the operation and
development of the National Fuel System
(NFS). Through the NFS, RECOPE
provides 24-hour nationwide coverage
and distribution services, at a singular
price, for the wide range of petroleum-
based products it offers; contributing to
the social and economic development of
Costa Rica.
Since its inception, and on account
of its sound business strategies, the
company has evolved into a modern
and
highly-specialized
industry.
Article 1 of Act 7356 (dated August
1993) stipulates that RECOPE shall be
responsible for: “importing, refining
and distributing wholesale crude oil,
and other petroleum-based products
(including fuel, asphalt and naphtha),
and for meeting the national demand for
oil, under the supervision of the State.”
RECOPE has unequivocally fulfilled this
mandate. RECOPE currently carries out
its responsibilities by importing finished
products and taking great care to scour
for the best possible pricing and quality
options in the market, in order to offer
products that were manufactured to
the highest possible standards, and
in accordance to current and effective
manufacturing practices, to domestic
consumers.
The company’s international purchasing
and logistic activities are complemented
with the blending, formulation,
odorization and colorization processes
carried out in Moín. Additionally, in
RECOPE’s many distribution centers,
where bulk sale transactions take
place, a strategic approach to storage
management allows the company to
provide nationwide coverage and fuel
distribution services.
As a regulated company, RECOPE
is duty-bound to reveal its finances,
pricing methods and QA verification
reports to the Public Services Regulatory
Authority of Costa Rica (ARESEP as per
its Spanish acronym). ARESEP is legally
responsible for defining and monitoring
the pricing and tariff-setting practices of
public service providers, in accordance
to the service-at-cost principle.
RECOPE’s current operations have a
margin of 4.78% to development works.
This allows the company to cover the
investments required to improve and
expand the National Fuel System, if
demand increases. At an international
level, certain private equity firms with
similar structures and obligations
have yields that go beyond 6%. These
calculations, however, include profit.
From an energy production standpoint,
Costa Rica heavily depends on petroleum
based products. Hydrocarbons account
for 66% of the country’s entire energy
consumption. Moreover, the primary
consumer of hydrocarbons – the
automotive industry – represents 80% of
the country’s hydrocarbon consumption;
highlighting the importance of ensuring
that efficient coverage and distribution
services of the highest quality are
provided nationwide.
In furtherance of the 2015-2030
National Energy Efficiency Action Plan,
08
2016 ANNUAL REPORT
