Government of Timor-Leste

The 8th Constitutional Government approved the allocation of subsidies to mitigate the impact of the increase in fuel prices, caused by the war in Ukraine.

To ensure the stability of fuel prices and avoid harmful consequences for the economy and consumers, the Government decided to intervene in the fuel market through the allocation of subsidies.

This measure will benefit the sectors of activities most affected by the increase in fuel prices, such as public road transport operators and also national air and maritime transport operators and the purchasers of fuel intended for agricultural and fishing activities.

The subsidy consists of a discount voucher (voucher) to be used at fuel stations and will be worth 100% of the difference between the average price per litre of petrol or diesel in December 2021 and the prices per litre of petrol or diesel charged on the date the fuel voucher is issued, taking into account the type of fuel and its characteristics.

In practice, this measure will allow beneficiaries to pay for fuel only the average fuel price that prevailed in December last year.

The Ministry of Transport and Communications, responsible for paying subsidies to public road transport operators and national air and maritime transport operators, and the Ministry of Agriculture and Fisheries, responsible for subsidies to purchasers of fuel intended for agricultural and fishing activities, are finalizing the necessary procedures so that the payment of subsidies may begin shortly.

The Decree-Law 18/2022, of April 19^th, which establishes these subsidies, was approved by the Government, at the meeting of the Council of Ministers, on April 13^th, 2022 and enacted by the President of the Republic last April 19^th.