Mozambique may subsidize public transport in the face of the crisis

The Mozambican Government admits to subsidizing public transport to contain the impact of the fuel crisis, marked by shortages, lines, and limitations on imports due to a lack of foreign currency. The Mozambican Government is studying subsidizing public passenger transport to avoid the impacts of the fuel crisis on the populations, admitting that the lack of foreign currency limits imports of these products in a short time, it was announced today. “The Government intends to use financial stabilization mechanisms such as subsidies or compensations to operators to avoid large-scale increases for families.

This approach ensures that the most vulnerable population maintains access to transport and essential products without suffering much immediate impact from this supply crisis,” said the Minister of Economy, Basílio Muhate, in parliament, where he is answering questions from deputies. For several weeks, Mozambique has faced difficulties in fuel supply, with stations closed across the country and widespread lines, as well as limits on the purchase of diesel or gasoline and a reduction in the supply of transport, following the conflict in the Middle East. Faced with this scenario, the Government emphasized today, before the deputies, that it will activate the 2025-2029 economic recovery plan to avoid greater impacts on the national economy and on the lives of populations in the face of the petroleum products crisis.

In this sense, it intends to “improve the management of strategic fuel stocks, increase storage capacity, and diversify suppliers. These actions aim to minimize risks of shortages, speculation, and market rupture, ensuring that supply is regular and resilient.” The Minister of Economy said that these measures will be taken because the increase in fuel prices pressures inflation, reducing the purchasing power of families, with the executive intending to avoid these scenarios. The executive has strengthened inspections to stop hoarding, in addition to prohibiting the re-export activity of domestic fuel, the minister said, referring to measures to reduce the crisis.

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Still in parliament, the Prime Minister again warned today that she will move forward with a gradual adjustment of fuel prices given the continuation of the war in the Middle East, asking that messages generating panic in society not be spread. “Mozambique, being a net importer of fuels and taking into account this international situation, it is inevitable that it makes the gradual adjustment of the prices of these products at the national level,” alerted the Prime Minister of Mozambique, Maria Benvinda Levi. The Government recalled that prices will continue to rise globally, affecting the country, stating that, to lessen the possible impacts that could arise from the adjustment of prices on the economy, the Government will apply a set of multisectoral measures. “We reiterate our exhortation for everyone to continue following the evolution of the situation with serenity and to refrain from propagating messages that could generate panic in society,” said the Prime Minister.

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