Groups call for short- and long-term measures to address slow fuel price cuts

[Photo: Ricaela Diputado]

Local groups have urged the government to introduce both short- and long-term regulatory measures to address concerns that fuel prices rise quickly but fall slowly, as international oil prices have declined while local retail prices have not seen comparable reductions.

According to a report by Macao Daily News, industry representatives said fuel pricing by suppliers and the level of government oversight are key factors affecting local fuel costs. They called on authorities to strengthen monitoring mechanisms, including reviewing import prices and suppliers’ profit margins, to better balance costs and consumer interests.

Data from the Consumer Council’s website showed that Tuesday’s retail prices for unleaded gasoline remained largely between MOP17.3 and MOP17.4 per liter.

One supplier reduced its price to MOP15.7 per liter, a decrease of 4.3%, while other suppliers’ latest reductions at the end of June were only 1.7%.

The groups argued that simply publishing fuel price information to improve transparency may have limited effectiveness, as it does not create a strong enough mechanism to regulate pricing behavior.

They suggested establishing a dedicated pricing oversight system through legislation, similar to regulatory frameworks used for essential public services.

They noted that fuel is a strategic resource and that the government has additional administrative tools, as fuel station sites are leased from the government. A formal pricing and profit-monitoring mechanism could help prevent excessive price increases and delayed reductions, they said.

For short-term measures, the groups suggested that the government work with fuel suppliers to review import costs and retail pricing.

They also proposed adjusting taxation policies, including imposing additional taxes on suppliers with higher profit margins, with the revenue used to support residents.

The groups also questioned whether existing fuel subsidy schemes should continue, saying that while subsidies help reduce residents’ expenses, they may not address the underlying pricing issue.

They pointed out that neighboring Zhuhai has adjusted fuel prices more closely in line with international market movements, while Macau prices have remained relatively high.