Dili, April 13, 2026 (Lusa) – The Revolutionary Front for an Independent East Timor (Fretilin) called on Monday for a strengthening of the role of the national oil company, TimorGAP, to play a greater role in controlling fuel supplies to power stations and managing national reserves.
Fretilin is the main opposition party in Timor Leste, holding 19 seats, led by former Prime Minister Marí Alkatiri.
“The subsidy of $168.8 million should be channelled to TimorGAP, not to private companies,” said Fretilin MP José da Cruz in a speech to the national parliament.
The state management would increase public revenue, bolster strategic reserves, ensure fuel quality, and allow for price controls to prevent private distributors' manipulation, he said.
In early April, the government approved $168.8 million (€144.3 million) in spending and authorised the petroleum minister to initiate an urgent direct-award procurement process to acquire 80 million litres of diesel, citing the conflict in the Middle East as justification.
"This measure has enabled ETO (a Timorese fuel distribution company led by Nilton Gusmão) to sell fuel purchased at low cost at high prices, doubling its profits, while also benefiting from state support amounting to $168.8 million.
This decision raises serious concerns regarding favouritism and conflicts of interest,” he said.
He also said that the current situation demonstrated that national energy security was in private hands rather than under state control.
“This stems from the government’s choice to prioritise contracts with private companies, many of which are linked to influential figures, rather than strengthening the role of the state-owned company TimorGAP, E.P.”, he said.
According to him, the administration has neglected TimorGAP’s strategic role and transferred these functions to private interests.
He also suggested that the government, led by Xanana Gusmão, should focus on renewable energy and food production, providing incentives to national producers rather than continuing to grant subsidies that benefit corporations while leaving the population dependent as consumers.
MSE/MYAL // ADB.
Lusa
