Mozambican entrepreneurs expect “difficult” days with fuel price hike

Mozambican entrepreneurs expect “very difficult” days, especially regarding purchasing power, following the increase in fuel prices, which reaches 45% for diesel, advocating for joint actions with the Government to reduce an “inevitable” impact. “It means we will have all this impact passed on to final consumers. We can expect more difficult days,” the vice-president of the Confederation of Economic Associations (CTA), Onório Manuel, told Lusa, recognizing that the problem was already “known, but not from the perspective of the increase in fuels that influence all areas.” “As for the final consumer, the families, there will be a reduction in purchasing power,” he admitted.

At issue is the impact on global fuel chains of the war in the Middle East. “It is a situation that we must accept and not politicize. And this has absolutely nothing to do with whether the Government’s management is good or not.

It has to do with the international situation,” the official referred, considering the reduction in consumer purchasing power as a “direct impact” of this crisis. For several weeks, Mozambique has faced fuel supply difficulties, with stations closed across the country and generalized lines, as well as limits on the purchase of diesel or gasoline and a reduction in transport availability, following the conflict in the Middle East. In Mozambique, diesel rose 45.5% today and gasoline 12.1%, with the sector regulator justifying the upward revision of fuels based on international market prices.

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Among other consequences of the adjustments in fuel prices, especially for the final consumer, the CTA points to the increase in the cost of living for families which, it warned, “will perpetuate” situations of “inequality.” “We will have Mozambican families here having much more difficulty meeting basic needs. Putting together the basic food basket. They are going to be very difficult days.

(…) The Government must design a strategy with the private sector, find ways to revive the economy,” he defended. Onório Manuel recognized that “nefarious impacts” are expected for Mozambique, with reflections across the entire chain, from production to the distribution of products, in various sectors, including tourism, trade, services, and agriculture, in addition to transport. “Ultimately, there will be no sector that will not be impacted,” he said.

As alternatives to mitigate the impact, he defended the reinforcement of public transport, with the introduction of electric vehicles and others powered by gas, considering this specific for relieving the burden and helping the population’s survival. The vice-president of the CTA also recognized that Mozambican companies were not prepared for the new fuel prices, calling for Government intervention to mitigate the effects. “The situation was inevitable, but that does not mean that companies are prepared, no, although, let’s say, Mozambican companies are specialists in dealing with crises,” he noted, calling, however, for the mobilization of funds for the productive sector.

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