Friday, 09 June 2023 03:33

Deputies in favor of continuing to subsidize liquefied gas until may 2024

Written by Evelyn Alas

Deputies of the Economy Committee issued a favorable opinion for the creation of the Special and Transitory Law for the Stabilization of Liquefied Petroleum Gas Prices, with the purpose of stabilizing the price of LPG for domestic consumption, which will allow to alleviate the pocket of salvadoran households.

The regulation, which would be in force until may 31, 2024, establishes a subsidy mechanism for consumers, through liquefied petroleum gas bottling companies that commercialize the product in portable cylinders. The Ministry of Finance will be in charge of administering the temporary mechanism.

In order to expand the benefits of the law, the working group received the general director of subsidies of the Ministry of Finance, Edwar Josué Lizama Argueta. He emphasized that the regulation will allow maintaining the conditions with which the stabilization of the prices of liquefied petroleum gas has been ensured up to now.

"The mechanism works in such a way that the resources of the price differences are transferred to the bottling companies and they maintain the price to the population in the different presentations. This complements the targeted subsidy and allows the most vulnerable households in the country not to be negatively impacted", said Argueta.

Congresswoman Aronette Mencia, from Nuevas Ideas, highlighted the importance of gas consumption in the home, so it must be guaranteed that its consumption does not harm the economy of the population.

"We are joining this articulated work that is carried out with the institutions for the protection of consumers. Before, they left these issues aside and looked after their personal interests", Mencía reproached.

The director of subsidies explained that in 2022 alone, $182 million was delivered in subsidies for both targeted and generalized subsidies.

Parliamentarian Elisa Rosales highlighted the importance of this initiative, since in 2022, according to the Ministry of Economy, 8.9 million 25-pound LPG cylinders, the most used by salvadorans, were sold.

"It is an urgent measure, it is a timely measure to protect the pockets of salvadoran families. From this commission, we have sought other initiatives to benefit the population, in the sense of ensuring a better market for liquefied gas", said Rosales.

In september 2021, the Transitory Law for the Stabilization of Liquefied Petroleum Gas Prices was created, however, its validity and effects expired last may 31, so it is necessary to have another mechanism to help the economy of salvadorans.

If a citizen wants to be a beneficiary of this subsidy, he/she must go to any of the windows of the Centros de Atención y Administración de Subsidios (CENADE) to consult if his/her condition allows him/her to opt for the benefit.

Subsequently, the interested party must present his/her Single Identity Document, the electric energy bill and, in some cases, must submit to a socioeconomic study to determine whether or not he/she is a beneficiary. The limit to be eligible for the subsidy is to consume 309.99 kilowatt hours.

 

Translated by: A.M