The official reported that they currently provide a subsidy of 10.82 lempiras for a 25-pound cylinder of GLP, which is trading at 240.90 Lps in Tegucigalpa.

It is projected that in March of this year, the price for fuel will cost more than 250 lempiras if it keeps the upward trend of recent months. Rauda explained that the extension of this financial assistance to consumers was not considered in the General Budget of Revenues and Expenditures of the Republic for 2011, because the government policy is to provide the the subsidy for lower income people.

According to the official, the government subsidizes about 400,000 gallons of LPG per week. Data from the Ministry of Finance indicates that during 2009, the amount of subsidy provided by the government totaled 72.6 million lempiras, and in 2010 it rose to 79.8 million.

Up until April of 2010, the government had provided a grant for the discounting of the price for a gallon of LPG to taxis as an option to cope with the rising gasoline costs.

The Director acknowledged that the current system also benefits housewives, cafes, restaurants, stands, tortilla factories and other businesses where food is cooked. The reform this year is projected to save the government 50 million lempiras per year.