Subsidies for LPG, gasoline roll out today

Direct government subsidies for liquefied petroleum gas (LPG) and gasoline takes effect today, as authorities move to offset rising fuel costs affecting households and small businesses.

Residents are eligible for direct government subsidies of MOP2.55 per kilogram for liquefied petroleum gas (LPG) and MOP1.5 per liter for gasoline.

The two-month subsidy measure was announced Friday by the Economic and Technological Development Bureau (DSEDT), with the LPG and gasoline subsidies taking effect today following the rollout of the diesel subsidy earlier this month.

According to the bureau, the subsidy scheme carries a total budget of approximately MOP41 million, broken down into MOP16 million for LPG and MOP25 million for unleaded gasoline. Under the plan, users of cylinder LPG will receive MOP25.5 per 10-kilogram cylinder and MOP34.4 per 13.5-kilogram cylinder, while central LPG system users will be subsidized at MOP6.22 per degree. As for gasoline, the plan provides a subsidy of MOP1.5 per liter after all discounts have been applied.

Providing further details on the scheme, bureau director Yau Yun Wah cited LPG as an example, noting that the average market price has risen by MOP4.26 per kilogram – from MOP21.37 in early March to MOP25.63 currently – with the government subsidy offsetting 60% of that increase. “Given the sustained rise in gasoline and LPG prices, which has already impacted residents’ daily lives and the operating costs of small and micro enterprises, the subsidy scheme was introduced,” Yau said.

The bureau emphasized that fuel companies must clearly indicate pre- and post-subsidy prices on invoices and retail price lists to show consumers the exact amount of government support.

The authorities reminded the public that under administrative regulations, commercial premises may store a maximum of four 13.5-kilogram household LPG cylinders, while unauthorized premises should not use LPG at all, and general households are limited to three cylinders.

The Fire Services Bureau (CB) warned that from 2024 to date, it has filed nine administrative penalty cases against shops for excessive LPG storage, with fines ranging from MOP5,000 to MOP50,000, and corporate fines reaching MOP500,000.

As reported, the authorities have set out the operational arrangements for the subsidy scheme, under which fuel companies are required to maintain complete and accurate books and records and submit reports to the government every 15 days.

Meanwhile, authorities launched a two-month diesel subsidy on May 11, offering MOP3.3 per liter. According to DSEDT, approximately three million liters of diesel have been subsidized under the scheme to date, and the bureau expressed confidence that the MOP80 million budget is sufficient to cover the program.