Lawmaker warns fuel subsidies ignore LPG, gasoline as prices surge 15%

The government’s temporary two-month diesel subsidy scheme – subsidizing diesel at MOP3.30 per liter – has now begun, but with fuel prices in Macau remaining as high as MOP349, lawmaker José Pereira Coutinho has expressed concern that high fuel costs will place a significant burden on low-income families.

According to a written inquiry from lawmaker Coutinho to Macau authorities regarding fuel prices at local oil companies, his office has recently received a large number of complaints over the continuous rise in prices of bottled LPG for household use, diesel, and gasoline.

Coutinho pointed out that fuel prices at some gas stations in Macau have continued to rise significantly, reaching levels close to MOP20 per liter.

In a social media post on Sunday, the lawmaker noted with concern that the price of a 13.5-kilogram household gas cylinder currently stands at MOP349 – up from MOP304 on September 2 last year, marking a 14.8% increase.

He believes that Macau’s current diesel price subsidies fail to cover the LPG cylinders and gasoline used by many working-class individuals for motorcycles and small business vehicles, as well as nonprofit organizations that provide essential services to society, all of which are similarly affected by recent fuel price hikes.

The diesel price subsidy program, which targets local diesel users, is now in effect.

When purchasing diesel from participating suppliers, users are eligible for a subsidy of MOP3.3 per liter on the amount actually paid. Authorities have reminded fuel retailers that they must maintain their existing customer discount schemes – the selling price must first reflect the retailer’s discount, with the government subsidy then deducted from that discounted price.

According to a feature published by Chinese-language media Macao Daily News on Monday, authored by Edmund Loi Hoi Ngan from the Institute of Socio-Economic and Public Policy at Macao Polytechnic University, the diesel subsidy measure is believed to have played a decisive defensive role in stabilizing Macau’s overall market prices.

The article noted that Macau’s relatively stable fuel price increases suggest that administrative guidance combined with market monitoring has achieved some success.

However, Loi suggested that Macau should use the current crisis as an opportunity to improve its price linkage mechanism by establishing a more transparent and formula-based system linking local fuel prices to international oil prices.

He also called for fundamentally reducing dependence on traditional fossil fuels, including accelerating the deployment of alternative energy sources, increasing investment in new energy infrastructure, and providing tax incentives or special funds to encourage the logistics industry and public transport operators to accelerate the replacement of vehicles with electric or other clean energy options.