Sunday, 31 January 2021 17:52

More than one million families will benefit from the increase in propane gas subsidy

Written by Dinero Staff

The salvadoran government informed that it will assume a total of US$8.04 in subsidy for propane gas, with which it seeks to benefit Salvadoran families after the announcement of the new increase in propane gas prices.

The authorities of the Ministry of Economy, explained that they added US$3.04 to the contribution made by the government, also emphasized that the amount of US$5.00 as subsidy was maintained throughout 2020.

This adjustment occurs 24 hours after the Directorate of Hydrocarbons and Mines (DHM) announced the reference prices for the second month of the year, which reflects an increase of $1.47 for the 25 pound drum, currently the most demanded in Salvadoran households.

With the increase announced by the Ministry of Economy, the maximum price of this presentation would reach $12.39 without subsidy and $7.39 with the benefit, a value that was also $3.11 more expensive than the one this product had in February of last year, a month before the declaration of emergency due to the covid-19 pandemic in El Salvador.

With the increase of the subsidy, to $8.04, consumers eligible to apply for the benefit will only pay $4.35, or $3.04 less than the $7.39 announced yesterday.

According to government authorities, the increase is due to a higher demand for heating fuels due to the winter in the Northern Hemisphere and a rapid recovery of the Asian economies.

"Temperatures across much of Europe and Asia are below forecast and are expected to remain so for a few weeks in February. Global gas demand is also forecast to continue to grow, driven by strong consumption in fast-growing Asian economies and supported by the continued development of international gas trade," the DHM analysis says.

The institution adds that compared to the performance recorded in December 2020 (month to calculate the price of LPG), the average variations for butane, and propane gases (used in the production of LPG) were +0.83 % and +34.12 %.

The DHM informed that the 20-pound cylinder will cost $1.95, while the 35-pound cylinder will have a maximum authorized value of $9.23.

However, those who are not covered for the benefit will have to pay $17.27 for the 35-pound cylinder, $12.39 for the 25-pound one, $9.99 for the 20-pound one, while the 10-pound one will not have a subsidy and will cost $5.13.

The 35-pound gas cylinder increased $4.36 in one year. The new price for February 2021 is $17.27 without subsidy.



Last modified on Sunday, 31 January 2021 18:01