THE FALLING price of oil which has hit its lowest level since the 2008 economic crisis, is saving Panamanian consumers some $47 million a month, but the reduction in cost to commercial businesses is not being passed on.

A gallon of 95 octane gasoline has dropped $1.18 in relation since July 2014. And, 91 octane has fallen even more by $1.37. Diesel is down $1.45 a gallon.
Average monthly consumption is estimated at 35 million gallons served from about 600 fuel stations.
Despite this good news for the motorist and transport industry and the impact on the national economy, there is a different picture when it comes to the prices of products and services.
When the price of fuel increases, food and services automatically go up in price. But when the there is a continuing fall as has happened this year, it is not reflected in products, especially food, says La Prensa.
For the eight weeks the price of oil has plummeted, hitting of $ 40 a barrel Texas case listed in the US, and $ 45 for Brent in Europe.
Oil has lost a third of its value since June because of increased production in the United States, a record pumping of crude in the Middle East and concerns about weak demand in Asian economies.
But in Panama, the perception is that commodity prices are not responding.
The president of the Panama Union of Industrialists of Panama, Ricardo Sotelo says the market does not respond immediately to any reductions.
However, industry recognizes that if the downward trend continues, there will be those who will lower their prices and given the strong competition that could occur, many will be forced to catch up and reduce their prices in order to not to lose market share.
In July the consumer price index (CPI), recorded an annual growth of 1% compared to the same month of 2014.
Last year inflation reached 2.6% and is expected to end this year at 2.2%. Meanwhile, the basic family food basket stood at $299.97 in the districts of Panama and San Miguelito, but in the interior at $275.59.
The basket, as its name implies, only provides food strictly necessary in the diet of Panamanians. An average family can spend about $500 a month in products and articles of daily use that are not included in the monitoring of the state says La Prensa
If the low fuel cost trend continues, businesses may be forced to reconsider their prices.