An empty petrol station in Dili, Timor-Leste. (Tatoli)
The government of Timor-Leste has approved a major fuel procurement plan on April 1, aimed at safeguarding national energy supplies amid continuing instability in the Middle East. The Council of Ministers authorised the expenditure of approximately US$168.8 million to purchase 80 million litres of diesel, according to a resolution presented by the Minister of Petroleum and Mineral Resources, Francisco da Costa Monteiro.
Officials said the move forms part of a broader strategy to strengthen the country’s fuel security as global energy prices remain volatile due to the ongoing conflict in the Middle East. The government warned that prolonged geopolitical tensions could disrupt supply chains and lead to shortages if preventive measures are not taken. The diesel procurement will be carried out through an urgent direct award procedure in order to accelerate the process.
Authorities expect the purchase to help establish a strategic reserve capable of sustaining the country’s energy needs by the end of the year. The reserve is intended to cushion the domestic market from potential supply disruptions and protect economic activity from sudden fuel shortages.
In addition, the Council recently approved a draft decree-law introducing temporary measures to stabilise fuel prices and ensure continued supply nationwide. The legislation sets maximum retail prices at US$1.50 per litre for gasoline, US$1.65 for diesel, US$2.50 for aviation fuel and US$4.20 per kilogram for liquefied petroleum gas.
Importers will be required to disclose their actual import costs, which will serve as the basis for calculating government subsidies financed through the state budget. The law also strengthens enforcement powers to prevent subsidised fuel from being diverted abroad and to penalise non-compliance. Officials said the measures are temporary and will remain under review depending on developments in global energy markets.
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