Overview

Honduras is a net importer of fuels, with domestic production (refinery) representing less than 10% of demand. Honduras' main fuel supplier is the United States, followed by Mexico, Colombia and Venezuela. The fuel is imported through two import terminals in the Caribbean and stored in seven storage tanks in the country.

Fuel supply in Honduras is provided by a number of private companies, including Puma Energy, Unopetrol, Chevron, Texaco and Shell. These companies operate a network of service stations throughout the country, as well as a network of storage terminals. The government also plays a role in fuel supply, regulating fuel prices and quality.

Fuel supply in Honduras has experienced some problems in recent years. In 2016, a fuel shortage occurred due to a number of factors, including a strike by port workers and a decline in production at U.S. refineries. In 2017, the Honduran government introduced a fuel rationing program to address shortages. Fuel supply in Honduras is also vulnerable to changes in oil prices. In 2008, rising oil prices led to a fuel price increase in Honduras, leading to consumer protests. Despite these problems, fuel supply in Honduras is generally stable. The government is working to increase domestic fuel production and diversify the supplier base. These measures should help ensure a reliable fuel supply in the future.

For more information on government and fuel provider contact details, please see the following links: 4.7 Fuel Providers Contact List.

Information may also be found at: http://www.mytravelcost.com/petrol-prices/ which is updated monthly. 

Fuel prices

The price of fuel in Honduras is determined by a number of factors, including crude oil prices, taxes, competition and demand. The price of crude oil is the most important factor that determines the price of fuel. Crude oil prices are set in global markets and are influenced by a number of factors, including supply and demand, geopolitics and weather.

Taxes also have a significant impact on the price of fuel. The Honduran government imposes fuel taxes as a way to raise revenue and reduce fuel consumption.

Seasonal variations

Fuel supply in Honduras is generally stable, but may be affected by seasonal variations. During the summer months, the demand for fuel increases due to tourism and agricultural transport. The Honduran government is working to manage these seasonal variations by increasing fuel storage and diversifying the supplier base. These measures have helped ensure a reliable year-round fuel supply.

Fuel transport

Because in Honduras there are no pipelines for the transport of petroleum products, this is done by means of cistern trucks. This type of transport is regulated through   the Petroleum Customs Commission (CAP), as part of the general regulation that applies to the fuel market. The regulations include: the fixing of tariffs, the exclusivity of freight operations to national entrepreneurs, restrictions on the entry of new operators and a series of technical measures related to the risk involved in the transport of the product, such as not allowing vehicles older than 10 years, periodic inspections of the equipment, limited days in driving vehicles etc.

The fuel cargo transport service is the best organized within the totality of cargo transport. However, it presents a comparable situation as other freight transport services about market deconcentrating. Although the Herfindahl / Hirschman (HHI) index in this market is 561.6, because of the 36 companies registered by the oil management commission only two have a percentage participation that exceeds 10%, fifteen have a participation between 2% and 8.5% and among the remaining 19 none reaches 2%.

Standards, quality, and testing

Fuel quality standards in Honduras are set by the Ministry of Energy (SEN). The SEN is the government entity responsible for regulating the energy sector in Honduras.

Fuel quality standards in Honduras are based on international standards established by the International Organization for Standardization (ISO). The SEN conducts regular tests to ensure that fuels marketed in Honduras meet established quality standards.

If fuels do not meet established quality standards, the SEN can take steps to withdraw them from the market. The SEN can also impose fines on companies that market fuels that do not meet established quality standards.

There are several national testing laboratories in Honduras that carry out tests to ensure that fuels marketed in the country meet established quality standards. These laboratories are accredited by the SEN.

The application of fuel quality standards in Honduras is effective. The SEN has a team of inspectors who carry out regular tests to ensure that fuels marketed in the country meet established quality standards. The SEN also has a system of sanctions for companies that market fuels that do not meet established quality standards.

The application of fuel quality standards in Honduras is important to protect the health of consumers and ensure the safety of vehicles.

Disclaimer: The inclusion of company information in the LCA does not imply any business relationship between the supplier and the WFP/Logistics Group, and is used solely as a determinant of services, and capabilities. Note: The WFP/logistics group maintains complete impartiality and is not in a position to endorse or comment on the suitability of any company as a trusted service provider.

The basic infrastructure for land transport (does not include rail) comprised in 2008 about 14,198.7 kilometres of road network, which is subdivided into main, secondary and neighbourhood. The neighbourhood road network is the majority with 8,253 kilometres, followed by the main with 3,280 kilometres and the secondary with 2,665 kilometres. Of the total road network, only 22.4% is paved and the remaining 77.6% unpaved, based on select material or simply earth.

The development and performance of the cargo transport and logistics sector is crucial for Honduras' competitiveness due to its interrelationship with agriculture and manufacturing.

Likewise, the Honduran highway system is managed by the Secretariat of Public Works, Transport and Housing of Honduras (SOPTRAVI), through the General Directorate of Highways, which is responsible for planning construction and rehabilitation projects of the country's road works. (https://es.wikipedia.org/wiki/Transporte_en_Honduras) 

Honduras has more than 15,400 km of roads. Until 1999, only 3,126 km were paved.

Similarly, the processes of comprehensive planning and improvement of transport services, cargo logistics and trade facilitation have been strengthened, including, among other measures: the preparation of a plan to modernize the transport and cargo logistics fleet; the establishment of the "Escuela National” and private land transport schools, including a specific programme for the training of women; and finally the updating of technological and digital tools for the consolidation of information in the tax administration, for its monitoring and management through a business intelligence tool.

For more information on the contact details of transport companies, please refer to the following link: 4.8 Transporter Contact List.

Disclaimer: The inclusion of company information in the LCA does not imply any business relationship between the supplier and the WFP/Logistics Group, and is used solely as a determinant of services, and capabilities.

Note: The WFP/logistics group maintains complete impartiality and is not in a position to endorse or comment on the suitability of any company as a trusted service provider.

Honduras is a country that stands out in the region as an investment destination, since it has the youngest workforce in Latin America. 50% of the population is relatively young, and 37% of the Economically Active Population (EAP) is in the 16-29 age range.

It is worth mentioning that Honduran workers are highly productive, and also have experience in production, marketing, administration, and logistics, for mid-level management positions.

With a considerable bilingual population, Honduras becomes an attractive country for companies from the United States and Canada. Same ones that seek this type of personnel with neutral accent for their businesses, especially those that are dedicated to sustainable businesses (BPOs) and Call Center investors, who have opened more than 10 thousand jobs in recent years

In the last 20 years, more than half a million Hondurans have been trained in the textile-clothing industry, and assembly of electronic parts. Honduras has a large amount of low-cost labor with the skills and abilities that allow them to train easily, and perform efficiently in these areas.

The telecommunications sector is characterized by being a strategic and transversal sector with implications in other sectors of the economy. Aware of this reality, Honduras, unlike other countries in the region, decided to create a specific Telecommunications Cabinet. Among the main objectives of the Cabinet is the development of the country's digital strategy, in coordination with the development of regulatory policies aimed at favoring the increase in the penetration of this sector in society and in the different sectors of the economy.

The creation of this Cabinet and the development of a transversal agenda has as its main guarantee to be formed by various Ministries where Telecommunications could promote specific projects in their respective areas. Thus, the following are part of the Cabinet:

- Ministry of the Presidency

- Ministry of Security and Defense

- Ministry of Finance - Technical Secretariat for Planning and Technical Cooperation (SEPLAN)

However, as developed later in the section, the participation of the Regulatory Authority, the National Telecommunications Commission (CONATEL), which will ultimately be the entity responsible for executing the regulatory policies defined by the aforementioned Cabinet, would also be recommended.

The situation of the telecommunications sector in Honduras is characterized by an unbeatable starting point from the political point of view:

• The importance of the telecom sector for the productivity, competitiveness and economic development of the country is recognized; 
• High-level measures are taken to develop concrete Strategic Plans and projects in education, health, defense, and e-government, among other sectors.

Telecommunications regulation

Telecommunications in Honduras must be developed under a free market regime, in which several companies coexist striving to provide various services, increasingly of better quality and under permanently more competitive rates, which ultimately benefit the user.

Taking into account the Framework Law of the Telecommunications Sector in force, which basically regulates public telecommunications services, classifying them into: Carrier services; final services, which include basic services and complementary services; value-added services and radiocommunication and broadcasting services. To make such regulation possible, the Law has established a regime of concessions, licenses, permits and registrations, which in sum constitutes a model of regulation predominantly ex-ante of the telecommunications market.

Existing humanitarian telecommunications systems

Hispasat, the Spanish satellite telecommunications operator, provides a free connectivity and teleeducation service to 15 schools and rural communities in Honduras.

The service is part of a Public-Private Alliance agreed within the framework of the humanitarian aid that Spain has allocated to Honduras, to "alleviate the devastation" caused by tropical storms Eta and Iota, in November, Hispasat said in a statement released by the Spanish Agency for International Development Cooperation (AECID).

The Spanish operator provided the necessary equipment for the deployment of 15 Wi-Fi satellite points in Honduras, as well as a "tele-education solution" that allows downloading and registering informative content on local servers so that students can access them efficiently.

Internet Service Providers (ISPs)

The availability of secure internet servers per million inhabitants is among the lowest in the region. These servers are those that use encryption technology to make transactions on the web, which is important to have greater security when sending and receiving digital information through the Internet network. The fewer secure servers there are in the country, the more vulnerable the information is to cyber attacks.

Mobile Network Operators (MNOs)

It is evident the growth in the use of mobile internet service compared to the rest of the services, promoted by access to platforms that allow the transport of voice and data, in particular text messages, however, it is still limited in the country, and its coverage still has much potential for improvement mainly in the interior of the country.

The mobile internet market has very low penetration levels, lower than the average for the region, despite the increase in data traffic observed in the country, being one of the lowest in Latin America. This shows the need to develop the mobile data market.

It has been observed in  the situation of the coverage of Mobile Telephony networks at the national level: For 2G technology a geographical coverage of 100% of the municipal capitals of Honduras, and a coverage of the population of 89.03%.

For information on MNOs, visit the GSM Association website.

The local market for food and other products in Honduras shows a considerable level of competition. There are multiple suppliers and local producers competing in terms of quality, variety and prices. However, it is important to note that the ability of the local market to meet current demand may present limitations in certain sectors, especially those that require more specialized technologies and processes. Factors such as limited access to finance, lack of modern agricultural technologies, climate variability, and challenges in pest and disease management can also limit agricultural production capacity in Honduras. This can affect the supply of fresh and local food in the market. 

In terms of scalability, the local market has significant potential. There are opportunities for growth and expansion of local production, in line with the country's growing demand. There is growing interest in the agro-industrial sector and increased investment in infrastructure related to the production and distribution of food and other products. 

In terms of imports and exports, Honduras imports a variety of products, such as cereals, dairy products, meat, fruits and vegetables, to meet domestic demand. At the same time, the country has a strong export capacity in agricultural products, such as coffee, bananas, shrimp and oil palm products. These exports have become important sources of income for the country. 

Generic country information can be found in sources that are regularly maintained and reflect current facts and figures. For an overview of country data related to the services and supply sectors, see the following sources: 

The Observatory of Economic Complexity - MIT (OEC): Honduras (HND) Exports, Imports, and Trade Partners | OEC - The Observatory of Economic Complexity

Disclaimer: The inclusion of company information in the LCA does not imply any business relationship between the supplier and the WFP/Logistics Group, and is used solely as a determinant of services, and capabilities.  

Note: The WFP/logistics group maintains complete impartiality and is not in a position to endorse or comment on the suitability of any company as a trusted service provider. 

Overview

Honduras has a diversity of investment sectors, some considered as the main ones, and others with a lot of potential for growth, exports and stability, in the domestic and foreign markets. Mentioning among these the hotel chains and different lodgings according to what the consumer wants, as for the electricity sector, there are companies at the municipal or departmental level that provide this service, with financial services there are certain numbers of banks and financial entities that operate in the country.

Accommodation

Honduras has an extensive hotel infrastructure in the main cities of the country, many 5-star hotels with swimming pools, cable TV, broadband internet, next to the beach, for greater attraction to tourists, citizens nationwide and business travelers, as well as houses or apartments for rent furnished and unfurnished.  for short and long seasons. For greater interest, you can contact the different agencies or websites in charge of providing various options for these services.

Electricity and Power

The electricity sector in Honduras is quite varied, so different sources of energy production are offered in the country, 7 primary energy sources are identified: hydropower, wind, geothermal, solar, firewood, bagasse, and vegetable fuels. These energy sources are known as primary because they do not need any kind of transformation and, therefore, can be used as they are found in nature. Each of them is represented by a network of companies that seek to offer a better service to the Honduran people.

Electricity can reach homes in a variety of ways. Hydropower is the most common of these. Honduras is home to the sixteenth hydroelectric dam in the world, the “Central Hidroeléctrica Francisco Morazán”, making it one of the country's main sources of electricity.

https://siehonduras.olade.org/WebForms/Reportes/ReporteBalanceEnergetico.aspx?or=-501&ss=2&v=1

Financial services

Financial companies in Honduras whose operations are the sale of financial services are regulated by the law of financial institutions, this law aims to regulate the organization, constitution, operation, merger, transformation and liquidation of the institutions of the national financial system, another regulatory entity is the commercial code and on the other hand we have the regulations provided by the Banco Central de Honduras which is the main financial institution in Honduras. a market economy, thus being the state institution that formulates, develops and executes the country's monetary, credit and exchange rate policy.

Postal and Courier Services

This sector is characterized by being dedicated to transporting written documents and small or medium-sized packages (parcels) within the country and around the world.

Printing and Publishing

The printing market continues to boom in new technologies and improve the efficiency levels of companies. Other companies oversee offering a good high-end editing service to the client and others are not.

Taxi companies

The type of taxi transport has become very widespread in the city, both within the collective taxi modality, which has a station point or a specific route assigned, and the neighborhood taxi or without a defined point or route. This service is used by sectors of the population with lower middle incomes upwards.

There are several companies nationwide in charge of managing taxis, having their own fleet or having affiliates from third parties.

There are also Uber operations in the main cities, this service has a good level of demand, especially in the medium and high categories.

Vehicle & Equipment Maintenance/Workshops

There are many workshops for the various brands that are distributed nationwide, guaranteeing good maintenance in each of the vehicles.

Vehicle Rental

There are many car rental offices conveniently located in all departments, with availability for the various brands that are distributed in the country, taking into account among them Rent-A-Car, KAYAK that offer a variety of vehicles according to the customer's needs.

Disclaimer: Inclusion of company information in the LCA does not imply any business relationship between the supplier and WFP / Logistics Cluster, and is used solely as a determinant of services, and capacities.

Please note: WFP / Logistics Cluster maintain complete impartiality and are not in a position to endorse, comment on any company's suitability as a reputable service provider.