Dili, April 13, 2026 (Lusa) - Finance minister Santina Viegas announced on Monday that Timor-Leste’s government was preparing a revised budget to address rising prices triggered by the conflict in the Middle East.
According to a statement from the Timorese Presidency, the adjustment aimed to mitigate the impact of soaring global prices and secure funds for essential subsidies, including food security and fuel costs, to protect the purchasing power of the Timorese people.
She met on Monday with Timor-Leste’s president, José Ramos-Horta, at the Presidential Palace in Dili.
She confirmed that work was underway, not specifying the exact figures or the specific changes to be introduced, saying that each ministry was currently analysing data to contribute to the final proposal.
Ramos-Horta emphasised the importance of inter-ministerial coordination to ensure that the proposed financial measures effectively meet the population's needs during this challenging period.
In early April, Timor-Leste’s government approved expenditure of $168.8 million (€144.3 million) to secure fuel supplies until the end of 2026 due to the conflict in the Middle East.
At the end of March, the government, led by Xanana Gusmão, approved legislation setting maximum limits on fuel prices in Timor-Leste.
He admitted last week that there was a possibility of cutting off the electricity supply between 11.00 p.m. and 5.00 a.m. if the conflict in the Middle East continued.
On 28 February, the US and Israel launched a military offensive against Iran, justifying the attack by citing Tehran’s alleged inflexibility to halt uranium enrichment under its nuclear programme, claiming it was intended solely for civilian purposes. In retaliation, Iran closed the Strait of Hormuz, a vital maritime artery for the global oil market, and launched strikes against Israel, US bases, and various infrastructures across the region, including Saudi Arabia, Bahrain, the United Arab Emirates, Qatar, Kuwait, Lebanon, Jordan, Oman and Iraq. Following negotiations over the weekend in Islamabad, Pakistan, which failed to reach an agreement, the US announced that the US military would begin a blockade of Iranian ports from Monday.
MSE/MYAL // ADB.
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