Gov’t leaves door open for fuel subsidies

The government has revealed that it is actively considering introducing 95-octane unleaded petrol while leaving the door open for temporary subsidy measures to counter expected global oil price fluctuations throughout the year.

The government launched two temporary diesel and fuel subsidy schemes in May as a “combination of measures,” with both programs concluding last month.

Secretary for Economy and Finance Ng Wai Han confirmed that the temporary relief measures had been introduced in response to the international situation at the time and had served their purpose, while emphasizing that the government would remain open to reintroducing subsidies should the market environment require it.

Ng confirmed that the two subsidy schemes had been implemented smoothly, with participating suppliers closely monitored and the programs achieving their objectives of providing short-term relief and price stability.

The decision to end them, she said, followed an assessment of international market trends and a commitment to fiscal discipline. She added, however, that the government remained vigilant about the impact of oil price volatility and had proposed to the transport and public works portfolio that future fuel station tenders should require operators to introduce new brands and fuel types, including exploring the introduction of 95-octane unleaded petrol.

She further cautioned that the introduction of new fuel products would entail numerous practical challenges, including securing reliable supply sources, ensuring quality standards, obtaining refinery cooperation, and arranging transport and storage infrastructure.

Retrofitting station pumps and delivery vehicles would also be necessary, potentially leading to higher costs being passed on to consumers. She emphasized that the mere presence of a product in neighboring markets did not mean it could be readily introduced in Macau.

Meanwhile, addressing public concerns over the disparity in fuel prices between Macau and the mainland, authorities clarified that the mainland’s refined oil exports are priced according to the Singapore-based Asia-Pacific refined oil trading platform rather than mainland domestic retail prices. This difference in pricing benchmarks, they said, explains the price gap.