The Peruvian Society of Liquefied Gas (SPGL) proposed to increase the monthly electricity consumption ceiling threshold used to define the beneficiary households of the Vale FISE, with the aim of coping with the new increase in liquefied petroleum gas (LPG) and serving 2.4 million additional families.
As recalled, the Voucher FISE provides a discount of S/ 20 to families in a vulnerable situation for the purchase of 10-kilo LPG cylinders.
According to the SPGL, the inclusion of this petroleum derivative in the Fuel Price Stabilization Fund (FEPC), which occurred in September 2021, allowed its price to be momentarily contained throughout the country, to the benefit of 8 .5 million families that use it to cook.
However, for a few days the international price of LPG has fluctuated to new highs due to the conflict between Russia and Ukraine.
“With this trend, the inclusion of LPG in the FEPC has become outdated, because said mechanism is not being used as it was in 2021,” the organization specifies.
In this sense, the SPGL also proposed to adjust downwards the Fuel Price Band to allow the cost of the raw material dedicated to packaging, affected by the FEPC mechanism, to lead to a reduction in the price of the gas cylinder in the market.
A third alternative to deal with the rise in LPG would be to modify the band update methodology, “maintaining the monthly adjustment, but with a reduction in the variation cap, from 10% to 2%”, with the consequent stabilization impact of prices and in the control of the current inflation expectation.
“The authorities must ensure that they give Osinergmin the necessary resources to combat informality, illegal production and smuggling between bottled gas and bulk gas based on the information included in the Order Control System (SCOP)”, added the SPGL.