Gov’t rolls out two-month diesel subsidy scheme with MOP80 million budget

Effective Monday (May 11), the government will provide a diesel price subsidy of MOP3.3 per liter for two months, with the Economic and Technological Development Bureau (DSEDT) director Yau Yun Wah stating that authorities have urged oil companies to prioritize stable supply, as diesel consumption in Macau remains relatively stable.

Fuel suppliers participating in the two-month diesel subsidy scheme must maintain their existing customer discount programs during the implementation period, the DSEDT chief said at a press conference yesterday. Suppliers are required to sign agreements with the government, maintain complete and accurate books and records, and submit reports every 15 days.

According to government data, Macau imports approximately 11 million liters of diesel per month, supplied by five companies to local depots.

“They must first apply the discounts offered by the fuel suppliers before deducting the government subsidy,” Yau explained. “Receipts must also clearly state the original price, subsidy amount, and other relevant information. Signs explaining the pilot program must also be displayed at gas stations.”

Authorities hope the program will help alleviate operational pressures faced by the industry due to diesel price fluctuations, thereby stabilizing prices. Based on estimates of Macau’s diesel consumption, the budget for the two-month subsidy is approximately MOP80 million.

Notably, approximately 8,600 vehicles, 63 boiler facilities, 200 other diesel-using facilities, and around 400 cross-border and industrial vessels rely on diesel in Macau.

As a core fuel for the city’s commercial and industrial sectors, diesel is widely used in freight logistics, passenger transport, industry, construction, fishing, laundry, and catering – making it an essential commodity with virtually no alternative.

“Diesel-using commercial and industrial activities are mostly directly related to people’s livelihoods,” Yau said, adding that the subsidy aims to prevent diesel costs from being passed on to consumer prices. The measure is designed to provide short-term relief, stabilize prices, protect livelihoods, and promptly ease cost pressures on commercial diesel users. However, he noted that the program is temporary.

“While safeguarding livelihoods and stabilizing prices, the government must also carefully consider its fiscal capacity and market mechanisms to avoid creating long-term dependency.”

Yau noted that while international crude oil prices do fluctuate when situations in the Middle East change, Macau’s refined oil market operates on a different mechanism. Industry sources indicate that local procurement prices are based on Singapore’s refined oil trading platform. He acknowledged the divergence between mainland China’s pricing mechanism – regulated by the National Development and Reform Commission (NDRC) with adjustments roughly every 10 days – and Macau’s market-driven pricing system.

Authorities added that vehicle fuels account for about 1.56% of the Consumer Price Index (CPI). The March 2026 CPI rose 0.03% compared to the January–February average, indicating a relatively moderate impact on overall inflation. Authorities did not directly respond to questions about whether a gasoline price subsidy would be introduced in the future.

At yesterday’s press conference, authorities committed to maintaining an open stance, listening to concerns from both the community and the business sector, conducting real-time assessments, and dynamically adjusting response measures based on actual circumstances – including whether the subsidy program would be extended if international oil prices continue to surge.