Mozambique: Diesel liter price to rise by 45.5% and gasoline by 12.1%

Diesel will rise by 45.5% and gasoline by 12.1% in Mozambique starting Thursday, the Government announced yesterday, justifying the upward revision of fuel prices with international market rates. “For more than two months, the Government has been closely monitoring the evolution of the conflict in the Middle East and, as is general knowledge, this conflict has triggered a rise in fuel prices internationally and on the African continent; in the southern African region in particular, there has been a generalized price increase,” said the Chairman of the Board of Directors of the Energy Regulatory Authority (ARENE), Paulo da Graça, in statements to journalists following the Council of Ministers in Maputo. Thus, as of May 7, a liter of gasoline rises to 93.69 meticais (€1.23), up from the previous price of approximately 83.57 meticais (€1.10).

The price of diesel will rise from 79.88 meticais (€1.06) to 116.25 meticais (€1.54) per liter; illuminating paraffin (kerosene) will increase from 66.86 meticais (€0.87) to 97.56 meticais (€1.29) per liter; cooking gas (LPG) will go from 86.05 meticais (€1.14) to 87.82 meticais (€1.15) per kilogram; and compressed natural gas (CNG) for vehicles will move from 41.11 meticais (€0.54) to 52.73 meticais (€0.69) per liter. “As the Government has been announcing, the fuel price update was set to occur between late April and early May, taking into account the prices practiced in the international market,” said Paulo da Graça, noting that since the beginning of April, Mozambique has been receiving these products at the new international rates. The Government had already admitted that a fuel price increase was inevitable, given the supply impacts caused by the conflict in the Middle East, through which approximately 80% of Mozambique’s fuel imports transition.

For several weeks, Mozambique has faced fuel supply difficulties, with closed stations across the country and widespread lines, as well as purchase limits on diesel or gasoline and a reduction in transport availability following the Middle East conflict, while the Government seeks alternative sources with “competitive prices,” according to the minister. “As an alternative, we have been working with other countries to see the possibility of establishing government-to-government agreements and partnerships for fuel supply. This is a recent situation, and there is work underway at the government level to seek these alternative sources from other fuel-producing countries,” said the Minister of Economy, Basílio Muhate, while responding to questions from deputies in parliament.

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Earlier today, Mozambican entrepreneurs considered the impacts of the fuel crisis “nefarious,” as it limits the mobility of employees and goods necessary for business operations, demanding explanations regarding the widespread scarcity at filling stations. On Tuesday, the executive stated that it is studying subsidizing public passenger transport to avoid the impacts of the fuel crisis on the population, admitting that the lack of foreign currency limits the import of these products in a short timeframe.

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