Presidency of José María Balcázar

Effects on daily life

At the beginning of March, the COEN mentioned that approximately "60% of Peruvian districts could be declared under emergency due to rains".^[83] In addition, according to the international outlet Bloomberg News, it generated rising food prices during a period of national gas supply crisis (see the next section),^[84] and the beginning of a new nationwide outbreak of dengue together with one of leptospirosis.^[85][86]

Overview

On 2 March 2026, the Vice Ministry of Hydrocarbons of the Ministry of Energy and Mines (MINEM), through Vice-Ministerial Resolution No. 004-2026-MINEM/VMH, declared the natural gas supply under emergency for 14 days, prioritizing domestic supply.^[87] Rising prices of food and gas cylinders were reported, with the crisis affecting cities such as Arequipa, Lima, Loreto, Madre de Dios and Pisco.^[88][89] On 6 March, remote work and virtual classes were decreed.^[90] It was announced that President José María Balcázar would travel to Megantoni, location of the gas leak, to inspect the operations carried out in the area.^[91] Despite the announcement, only Prime Minister Denisse Miralles and her ministers went to the location.^[92] On 12 March, President Balcázar, in a press conference, announced that in-person classes and in-person work would return to normal. Likewise, he established 14 March as the date for the restoration of gas and natural gas vehicle fuel services at different stations in the city of Lima, as well as the repair of the broken pipeline of the Transportadora de Gas del Perú (TGP) company in Cusco, thus concluding the stage of the energy crisis in Peru.

Gas pipeline rupture

On 1 March 2026, the rupture of pipelines belonging to Transportadora de Gas del Perú (TGP), responsible for transporting Camisea gas, was detected. It occurred at kilometer point 43 (KP43) in the Megantoni District, department of Cusco, where a flare was observed. According to TGP, at 11:00 the emergency response plan was activated and, as a preventive measure, the natural gas and natural gas liquids transportation systems were temporarily suspended. For its part, the municipality of Megantoni, through its Office of Disaster Risk Management, stated that it had become aware of the events and called for calm among the population.^[93][94] The Ministry of Health confirmed that 35 people were affected by the gas leak,^[95] while the district mayor of Megantoni estimated that between 1,000 and 15,000 inhabitants had been directly affected by the leak.^[96]

Regarding the causes of the accident, El Comercio reported that it could be due to human error during maintenance work.^[97] Enrique Martínez Stolzembach, senior manager of new business and institutional relations at TGP, stated that no hypothesis regarding the pipeline rupture, including sabotage, could be ruled out, although the incident was still under investigation.^[98]

During the repair of the gas pipeline

On 2 March 2026, the Vice Ministry of Hydrocarbons (of the Ministry of Energy and Mines, MINEM), through Vice-Ministerial Resolution No. 004-2026-MINEM/VMH, declared the natural gas supply under emergency for 14 days, prioritizing domestic supply.^[94][99] In addition, Ángelo Alfaro, minister of MINEM, ordered the creation of a crisis committee composed of the Economic Operation Committee of the National Interconnected System (COES), Osinergmin, TGP, distributor company Cálidda, among others.^[100][101] For its part, the National Directorate of Hydrocarbons activated a rationing scheme under Osinergmin supervision to guarantee distribution.^[102]

Beginning on 3 March, long queues started to be detected at service stations supplying compressed natural gas (CNG).^[94][103] Faced with the crisis, Minister Alfaro declared that transport workers should use other fuels, such as gasoline, and warned of sanctions in cases of speculation.^[104] Transport workers, meanwhile, declared that opting for gasoline reduced their income by half and that passengers refused fare increases intended to alleviate the situation. The Urban Transportation Authority for Lima and Callao (ATU) issued a statement reporting that fuel supply for the Metropolitano buses was guaranteed.^[103] Prime Minister Denisse Miralles, at a press conference, declared that gas use would be prioritized for domestic use and mass transportation.^[105]

Due to the CNG shortage, it was detected that transport workers were modifying their vehicles to use liquefied petroleum gas (LPG) as a substitute despite the risk that this practice could cause vehicles to catch fire. According to reports, drivers acquired converters costing between 40 and 60 soles to carry out the process.^[106][107] A vehicle fire was reported at the intersection of Venezuela and Universitaria avenues in the Lima District.^[108] Another reported case was detected in Surco next to the University of Lima.^[105][109] In addition, shortages and high gasoline prices were reported.^[110] It was reported that Pluspetrol, the largest LPG producer in Peru, halted production of LPG and other derivatives due to the pipeline incident.^[111]

The Urban Transport Association of Peru (ATSUPER) called for a transport service stoppage and march on 5 March due to the public transport extortion crisis and lack of gas supply. Likewise, the Yellow Taxis Coordinator of Lima and Callao reported that it was evaluating holding protests.^{[112][113][114]} The Association of Gas Stations and Service Stations of Peru (AGESP) issued a statement detailing that, through Directoral Resolution No. 020-2026-MINEM/DGH, distribution would be prioritized for residential consumers, merchants and mass transportation using CNG. It added that freight vehicles and light vehicles such as taxis or motorized rickshaws were not among the priorities.^[114] That same day, the Congress of the Republic invited the minister of energy and mines to explain the impact of the gas shortage, with the motion presented by congressman José Luna Gálvez. Due to the urgency of the situation, the president of the Board of Directors of Congress, Fernando Rospigliosi, summoned the minister for 4:00 p.m. that day, an act approved unanimously.^[115] At the agreed time, the minister appeared. During his presentation, he declared that the country was experiencing one of the most important energy crises in the last two decades "because of the country's high dependence on a single gas transport system", that 91% of the gas system had collapsed, that connectivity was being restored within 14 days and that the causes of the incident remained under investigation.^{[116][117][118][119]} The Energy and Mines Commission summoned the minister for 6 March to explain actions to be taken in response to the crisis.^[120]

The rise in food and gas cylinder prices was reported, with the crisis affecting cities such as Arequipa, Lima, Madre de Dios and Pisco.^{[121][122][123][124]} Likewise, queues of trucks were reported forming to obtain fuel at the Pampilla refinery, although the general director of hydrocarbons of MINEM declared she was unaware of the event. The National Association of Land Freight Transport (ANATEC) stated that 1,200 units of its members were affected by the situation and criticized the decision to exclude land freight transport from fuel prioritization, arguing that it created problems because the sector was interconnected with diverse economic sectors.^[122] In Villa El Salvador, garbage collection in the district was reported halted due to the CNG shortage.^[125]

On 6 March, due to the crisis, Prime Minister Miralles announced remote work for the public sector in Lima and Callao and encouraged its adoption in the private sector. Remote classes were also ordered for schools and universities for one week, along with the advancement of holidays in affected sectors.^[126][127] The implementation of remote classes and remote work was criticized by the Foreign Trade Society of Peru (ComexPerú) and the National Confederation of Private Business Institutions (CONFIEP). ComexPerú described the measure as "unacceptable", arguing that the adopted decisions shifted the burden of the crisis onto citizens and companies, and adding that the country should not paralyze its functioning in the face of similar emergencies. CONFIEP, meanwhile, stated that "we consider that an energy crisis should not be resolved by generating additional problems in education and productive activity".^[128] Meanwhile, Carlos Puente, of the Association of Gas Stations and Service Stations of Peru, declared that the impact of the rupture not only affected CNG but also extended to LPG, diesel and gasohol.^[129] For its part, Grupo Gloria announced that it would maintain its prices despite the gas shortage.^[130] It was also reported that President José María Balcázar would travel to Megantoni to inspect operations in the area.^[131] The creation of WhatsApp groups by transport workers to locate supplied filling stations in real time was detected.^[132] Gerardo Hermoza, president of the board of the Purple Corridor, reported that operations would continue until their remaining CNG ran out and criticized MINEM's management, describing it as "disastrous".^[133] The Alliance of Private Schools criticized the decision of the Council of Ministers and requested that "education" be prioritized,^[134] and later called for a protest outside MINEDU on 9 March — despite the fact that its staff would be working remotely that day.^[135]

On 7 March, Prime Minister Miralles and the ministers visited Megantoni without Balcázar being present.^[136][137] That day, workers began isolating the damaged pipe.^[138] On 8 March, through Ministerial Resolution No. 033-2026, the government officially established virtual classes, exempting preschool education schools and institutions lacking technological infrastructure.^[139][140] In addition, the government temporarily closed several museums and heavy cargo transport workers announced a strike for 12 March.^[141][142] During that time, the podcast La Contra reported that electricity companies Kallpa, Engie and Orygen had allegedly negotiated with the state to pass corporate losses onto citizens' electricity bills through the so-called transmission toll, in the same way as occurred with the 2008 emergency decree during the gas shortage in Lima.^[143]

By 9 March, some schools were found not complying with the regulations, arguing that "parents did not have equipment and because of work".^[144] Keiko Fujimori, leader of Popular Force, stated that if in-person classes did not resume, her party's congressional caucus would not give the Miralles cabinet a vote of confidence. Avanza País – Partido de Integración Social adopted the same position.^[145][146] This conditioned the government to retreat from its initial measure and allow private schools to decide whether to return to classes.^[147]

Minister Alfaro announced that TGP had advanced "48%" in repairing the pipeline by that date.^[148] TGP confirmed that the fire in the area had been extinguished, but stated that repairs would be affected by weather conditions.^[149] The following day, Osinergmin stated that several suppliers still had some fuel reserves: Pluspetrol in Pisco for 5.5 days, Solgas for 3.7 days, Terminales del Perú (TDP) for 2.3 days and Zeta Gas for 1.5 days.^[150]

On 10 March, it was announced that repairs had advanced to 52%.^[151] On 11 March, congresswoman Katy Ugarte denounced that the spokesperson of the Together for Peru caucus, Roberto Sánchez, removed her from the Consumer Defense Commission after she summoned the minister to testify.^[152] By 12 March, repairs were announced as being at 74%,^[153] while by 13 March it was announced that repair work had reached 90%.^[154] Hours later, President José María Balcázar stated that repairs had been completed and that gas supply had resumed.^[155]

Increase in public transport prices

In mid-March, price increases in urban transport systems occurred in several cities due to the gas shortage. In Trujillo, there was a 15% increase in all fares of a local transport company.^[157] In Juliaca, protests and roadblocks took place.^[158]

In the case of Arequipa, according to the newspaper Correo, the increase was due to the fact that "the price of a gallon rises every day, from 18 to 22 soles".^[159] The Formal Transport Workers' Front Association had issued a statement addressed directly to the Provincial Municipality, asking it to subsidize the service or grant them preferential treatment for fuel, warning that, otherwise, they would take "radical measures".^[160] As the days passed, users began to criticize transport companies over the price increase,^[161] especially in the Cono Norte, where the Transport Workers' Front carried out a "pressure measure".^[162]

The Provincial Municipality opposed a fare increase above one sol per trip,^[163] because the concessionaires had established that single fare until a new consensus was reached between the authorities and the companies.^[164] Once the pipeline was repaired, the municipality sent a notarized letter to the operators warning that, if they insisted on keeping fares high, they could be reported, either by inspectors or by users via text messages, and face service closures.^[159]

Subsequently, the Arequipa municipality yielded to pressure and announced a fare increase to 1.30 soles starting on 25 March, although oversight work would continue^[165] and there were plans to reverse that fare once the energy crisis ended.^[166] The portal El Búho noted that the Arequipa Bar Association had denounced the lack of technical support and possible price-fixing among transport companies.^[167] The Student Defense Front and the Departmental Federation of Workers of Arequipa called protests over improper regular and university fare charges.^[168][169] The Prosecutor's Office announced investigations into mayor Víctor Hugo Rivera over the fare increase.^[170]

After the gas pipeline repair

After the resupply of Camisea gas, the Peruvian Liquefied Gas Society stated that supply had not fully normalized until several weeks later.^[171] The government announced on 13 March that a regasification plant would be built to store more gas reserves and achieve the goal of 30 days of supply.^[172] Meanwhile, the Congress of the Republic approved an initiative to promote the use of small modular reactors to generate electricity in anticipation of the eventual depletion of the Camisea field.^[173] On 17 March, Osinergmin extended the duration of emergency measures until 21 March.^[174] The Camisea Gas operator guaranteed that the price would remain stable amid increases in other fuels.^[175]

At a public event on 20 March, President José Balcázar publicly blamed TGP for the crisis and announced that the Ministry of Economy and Finance was evaluating the possibility of activating a fund to subsidize fuels.^[176]

The newspaper La República noted that inflation in April had grown by 0.52% due to the increase in fuel prices. The head of INEI, Gaspar Morán Flores, confirmed that transport was one of the main factors that influenced the April result.^[177]

In May 2026, specialist Claudia Sícoli reported for Infobae that a fuel shortage could occur due to Petroperú's operational problems, which would cause a deeper crisis in the energy system.^[178]