Government approves temporary measures to stabilise fuel prices and ensure supply
At its meeting on March 25th, 2026, the Council of Ministers approved a draft Decree-Law presented by the Minister of Petroleum and Mineral Resources, Francisco da Costa Monteiro, establishing temporary measures to stabilise fuel prices and ensure the security of fuel supply in Timor-Leste.
The legislation aims to mitigate the effects of current international instability on the energy sector, safeguard households’ purchasing power, reduce the impact of potential price increases on the economy, and ensure the smooth operation of economic activities, while maintaining fuel availability across the country.
The Decree-Law establishes maximum retail prices, setting the cap for gasoline at US$1.50 per litre, diesel at US$1.65 per litre, aviation fuel (jet fuel) at US$2.50 per litre, and liquefied petroleum gas (LPG) at US$4.20 per kilogram.
To ensure compliance with these limits, importers are now required to report their actual import costs, which form the basis for calculating the subsidy to be granted by the Government, funded through the General State Budget.
The Decree-Law also provides measures to ensure supply continuity, including developing strategies for importing essential fuels through cooperation between public bodies and industry operators, as well as the option to implement exceptional market regulation mechanisms.
As part of enforcement efforts, the authority of the competent agencies is being bolstered, with a particular focus on preventing the diversion of subsidised fuel outside the country and on applying penalties for non-compliance.
These measures are temporary and will remain in force until the end of the year; they may be reviewed, extended, or terminated depending on developments in the international market.
