Jet fuel price increase could drive up air travel costs in Mozambique – AIM report

The cost of air transport in Mozambique could increase in the coming period following a sharp rise in jet fuel prices on the international market. The warning was issued by the National Director of Hydrocarbons and Fuels, Felisbela Nhate, during a press conference held in Maputo, in the presence of fuel importers and distributors. According to Nhate, jet fuel has recorded one of its most significant recent increases, rising from around US$769 per tonne to US$1,595, reflecting high volatility.

This scenario could directly affect airline operating costs and, consequently, passenger fares. The price increase is largely linked to geopolitical instability in the Middle East, one of the main fuel-supplying regions. “The worsening political situation in the Middle East has had a direct impact not only on the price of the product itself, but also on freight costs,” said Felisbela Nhate.

According to Nhate, the cost of transporting a barrel (freight) has also increased significantly, rising from around US$5 in January to approximately US$13.70, which directly influences the CIF Maputo price, the basis for the fuel import invoice (CIF: Cost, Insurance, and Freight) . “The freight cost is part of the CIF calculation, which is the price reflected in our import bill,” she explained. Nhate added that the overall increase in costs is putting pressure on the entire energy supply system.

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Jet fuel plays an essential role in the aviation sector, being used in both commercial and cargo aircraft, and its pricing structure depends on several factors, including the international cost of refined oil, transport and logistics expenses, exchange rates, storage costs, operators’ margins, and tax charges. In Mozambique, the fuel pricing mechanism is regulated by a specific legal framework aimed at ensuring transparency and market stability, with the Energy Regulatory Authority (ARENE) responsible for setting and updating prices. In the current context, Felisbela Nhate acknowledged the possibility of regulatory intervention.

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