Mozambique government says no signs of fuel price hike

The Mozambican Government has assured that there are “no signs” indicating a possible rise in fuel prices due to the Middle East conflict, expressing its willingness to engage with sector stakeholders to mitigate economic impacts. “Our Government is monitoring the situation regularly and closely, in contact not only with other countries but also with their embassies. At this moment, there are no signs of a fuel price increase, given that there are some reserves and the shipments expected to arrive in the country will do so as planned.

We have no contrary information,” said the spokesperson of the Council of Ministers, Salim Valá, at the end of a Cabinet meeting in Maputo. The official added that there is no evidence pointing to a potential fuel price increase due to the Middle East conflict, reiterating that with products available at ocean terminals, Mozambique has sufficient reserves to supply the market, with new shipments expected to arrive between 26 and 30 March. “The Government is aware of the conflict’s impacts, is monitoring developments, and remains available to engage with operators and all stakeholders to help mitigate the risks and negative effects of the Middle East conflict on our country,” the Cabinet spokesperson said.

On Monday, the Governor of the Bank of Mozambique, Rogério Zandamela, stated that there is no need to restart fuel import financing, despite supply challenges caused by the Middle East conflict. “For the time being, we see no need to adopt such a stance,” the central bank governor said when questioned by journalists at the end of the Monetary Policy Committee (CPMO) meeting. “The banking sector has been performing well — it’s not perfect, but it has enabled us to ensure that fuel financing continues reasonably smoothly, and at present we see no reason to change that approach,” Zandamela added, also responding to questions on difficulties accessing foreign currency for these imports.

[paywall]

Earlier, on 10 March, the Secretary of State for Treasury and Budget, Amílcar Tivane, had confirmed that Mozambique had 75,000 tonnes of fuel, considered sufficient until early May, acquired at pre-conflict prices before Iran blocked passages through the Strait of Hormuz. Tivane also noted that Mozambique has around 85,000 tonnes of fuel at ocean terminals, available if needed. On 3 March, the Mozambican Government stated that no nationals had been killed or injured in the Middle East conflict, reporting nearly 700 Mozambicans in the region.

On 28 February, the United States and Israel launched a military attack against Iran, killing Supreme Leader Ayatollah Ali Khamenei, who had led the country since 1989. Iran closed the Strait of Hormuz and launched retaliatory attacks on targets in Israel, US bases, and other regional infrastructure.

[/paywall]