2003News

Drivers to receive gas subsidy

The LPG (liquid propane gas) shortage eased slightly yesterday, although there is still extensive scarcity with many depots closed and long queues at those that remain open. Gas wholesalers, who attribute the shortage to increased demand over recent weeks, estimate it will take about 15 days to normalize supplies. The government’s plan to change the way the fuel is subsidized, which has come under attack from the public transport sector, appears to have been amended. It is now expected that drivers will be eligible for subsidized fuel, along with other small-scale consumers such as individual households. President Hipolito Mejia explained that this sector could not be excluded from the proposed subsidy. “We decided to carry out a more detailed study of all the sectors, because, realistically, if I had signed the decree we would have had problems with the drivers, so in this case we had to be more flexible.” The President reiterated that large-scale consumers and industries would not receive the subsidy. Many taxi, bus and ‘publico’ (shared taxi) drivers have converted their vehicles to run on LPG, which is significantly cheaper than gasoline. The new subsidy plan is due to be announced by the President over the next few days. It is not clear how the subsidies will be administered, but the authorities have already said there would be no return to the coupons system that led to widespread corruption when it was implemented at the start of the Mejia government.