Global Courant
The Executive expects Congress to present a bill to extend the propane gas subsidy, while analyzing whether it will request a new extension in the case of the electricity rate subsidy, which expires on June 15 and 30, 2023 , respectively.
The Minister of Energy and Mines (MEM), Alberto Pimentel, said that some deputies have requested information on the implementation of the propane gas subsidy, as well as records of consumption levels.
“We are aware that an extension (for propane gas) is being worked on in Congress and we are aware because they have asked us for data,” Pimentel explained.
Currently the subsidy is applicable for Q0.80 for each pound of the gas cylinder, that is, contributions ranging from Q8 to Q28 for cylinders from 10 to 35 pounds.
The Government has disbursed Q536.04 million to cover the propane gas subsidy since November 2021, which came into force for the first time, until March 15, 2023 when the last extension was approved.
During this period, the subsidy has been applied to the purchase of 25.9 million cylinders of different presentations, confirmed the MEM.
According to the reference prices of the portfolio, from May 30 to June 5, already with the subsidy included, the 10-pound cylinder is at Q46; the one of 20 pounds to Q192; the one of 25 pounds to Q115 and the one of 35 pounds to Q161.
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Electric power
Pimentel explained that on the part of the Executive, they are also analyzing requesting an extension for the extraordinary contribution that is currently applied for the consumption of 89 and 125 kWh (kilowatt hours per month) of electrical energy, which expires on June 30.
Its extension could be up to three months, as has been requested in previous extensions.
Currently the social rate and the extraordinary contribution apply for consumption between 0 and 125 kWh.
“If we decide, we will maintain the level of consumption because it basically covers 75 percent of the people who have electricity,” said the official.
With the current subsidy, households with consumption from 0 to 60 kWh, pay Q0.50 for each one; Q0.92 for each one in the maximum consumption of 88 kWh; and Q1 for each one in consumptions of up to 125 kWh.
Also read: “The subsidies have already become a fiscal hole, while the increase in fuel prices continues”: Hugo Maúl
Financing
The Minister of Public Finance, Edwin Martínez, explained that they have been consulted by the Ministry of Energy and Mines about what sources of financing could be used to cover a new expansion of the propane gas subsidy.
“The first (source) could be cash balances, but it will depend on the amount that Congress seeks to know and approve,” said Martínez, who assured that in the case of electric power they still do not have information, but if a request arrives, sources of financing would be sought.
