Fuel subsidy plan ends after two months as gov’t cites stabilizing impact

The government’s temporary fuel subsidy plan, aimed at easing fuel costs in response to the price surge caused by instability in the Middle East, is coming to an end.

The subsidy program, established for a fixed two-month period starting in May, will come to a close, beginning with the one related to diesel, which ends tonight.

In a statement, the Economic and Technological Development Bureau (DSEDT) noted that the plan has been operating smoothly.

“Preliminary data show that the local overall inflation rate in May and June remained moderate, and the plan has essentially achieved its intended objectives of alleviating cost pressures on the industrial and commercial sectors related to fuel, as well as stabilizing the prices of goods essential to the population’s daily lives,” DSEDT noted.

Citing the recent gradual stabilization of the international geopolitical situation and following a comprehensive analysis and assessment, the plan will end on the expected date and is not expected to be extended.

The bureau also said that authorities have already notified the sector to adjust, “as soon as possible and in a reasonable manner, the retail prices of fuel products in Macau in line with international oil price trends, to address the needs of the industrial and commercial sectors and meet society’s expectations.”

The DSEDT also said it will continue to monitor the situation, collect information on fluctuations in oil product prices, analyze and track such trends, and coordinate with the sector to stabilize fuel prices and supply.

In the meantime, the Interdepartmental Working Group on Fuel Oversight will continue to monitor the implementation of the plan until its full completion on July 25. It has also commissioned an independent third-party auditor to verify, audit, and confirm the relevant sales data, invoices, and records, with a view to ensuring the proper and reasonable use of subsidy funds.

The three plans, covering diesel, Liquefied Petroleum Gas (LPG), and gasoline, each lasting two months, have offered subsidies of MOP3.30 per liter of diesel, MOP1.50 per liter of gasoline, and MOP2.55 per kilogram of LPG.

The DSEDT said that the subsidy amounts correspond to 60% of the increases observed in these three fuel types.