The Nicaraguan authorities are to cover 70% of the increase to keep high prices at bay

The government of Nicaragua announced on Friday that it would not be hiking fuel prices, despite the surge on global markets amid the crisis in Ukraine.

Instead, the authorities will absorb 70% of the gasoline and diesel price increase, while leaving the prices on liquefied petroleum gas without any adjustment, as the latter is critical for most Nicaraguan families, who use it to prepare food.

The measure is intended to keep consumer prices on those fuels at a manageable level and to lessen the impact of the global fuel price hike on the domestic household economy.

READ MORE: Ukraine conflict could spark food riots in poor countries – WTO

For now, the announcement covers only the period until April 2, but the government has said it will keep a close watch on the global fuel markets and adjust its policy accordingly.

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