Lawmakers call for fuel pricing reforms after subsidy ends

[Photo: Ricaela Diputado]

Legislators Leong Sun Iok and Chan Lai Kei acknowledged that the government’s two-month fuel subsidy program provided tangible relief to transport operators, catering businesses, and households facing higher fuel costs, but warned that the end of the measures could bring renewed pressure on retail prices and market transparency.

The government’s fuel subsidy program officially ended, with authorities saying the measure had fulfilled its role as a short-term buffer against rising energy costs. The diesel subsidy had already expired on July 10.

Introduced in May as a response to a sharp increase in international oil prices, the subsidies covered liquefied petroleum gas, gasoline, and diesel. Official data showed a decline in Macau’s transport and housing fuel price indices for June, which the government cited as evidence that the measures helped ease inflationary pressures in the fuel sector.

Citing a recent decline in global crude prices and the need for fiscal prudence, the administration decided not to extend the subsidies beyond their original term.

Leong pointed to continued volatility in international oil markets, driven partly by geopolitical tensions in the Middle East. He warned that future price increases could raise local retail costs for diesel, gasoline, and LPG, affecting industries including logistics, tourism, fisheries, and aviation.

He also noted that the average retail price of unleaded gasoline had fallen from about MOP17.3 per liter when the subsidies were introduced to the current range of MOP15.7 to MOP16.7 per liter.

LPG prices, he added, remained relatively high, placing additional pressure on households that rely on bottled gas for cooking.

Leong urged the government to continue monitoring international oil trends and their impact on local prices, while remaining prepared to introduce relief measures if conditions worsen. He also called for greater transparency in fuel pricing, including clearer disclosure of price structures.

Chan echoed concerns from residents and businesses about possible cost increases following the subsidy withdrawal. He urged fuel retailers to exercise social responsibility by reducing prices where appropriate and ensuring that local fuel prices remain aligned with international reference levels through the existing cross-departmental monitoring mechanism.

In the longer term, Chan called for a permanent fuel price adjustment mechanism with clear trigger points to activate stabilization measures when international crude prices reach certain levels.

Both lawmakers also renewed calls for the introduction of 95-octane unleaded gasoline. Leong urged the government to clarify the practical challenges involved, while Chan suggested that planned integrated energy facilities in Zone A of the new urban reclamation area, including plots A14 and C27, could provide an opportunity to introduce the fuel option.

Beyond fuel pricing, Leong encouraged wider adoption of electric vehicles and household electrification to reduce Macau’s reliance on imported fossil fuels. Chan also called for the timely tendering of land for integrated energy stations in Zone A to support fast-charging and battery-swapping infrastructure.