Mozambique has enough fuel to keep the economy running until early May amid Strait of Hormuz disruptions – government

The Secretary of State for the Treasury and Budget assured yesterday that Mozambique has 75,000 tonnes of fuel, sufficient until early May, at a time when the Strait of Hormuz is practically closed due to the conflict in the Middle East. “At the moment, existing fuel stocks make it possible to ensure the functioning of the economy until early May. However, actions are being undertaken to ensure that, in the event of a total disruption in the flow of petroleum products through the Strait of Hormuz, deliveries of orders can be activated through alternative routes,” said the Secretary of State for the Treasury and Budget, Amílcar Tivane.

He was speaking in Maputo at the end of the Council of Ministers meeting, where he noted that, in light of the conflict in the Middle East following joint attacks by the United States and Israel against Iran, the Government is studying mechanisms to seek alternatives for obtaining fuel should the situation worsen. 80% of fuel imports pass through the Strait of Hormuz Around 80% of Mozambique’s fuel imports pass through the Strait of Hormuz from the Middle East, Tivane said, adding that Mozambique currently has 75,000 tonnes of fuel, enough to meet domestic consumption needs. “Orders are placed in advance, involving fuel import associations as well as distributors, and at the moment the market has a little over 75,000 tonnes of fuel,” he said.

“The prices at which these products are being traded — petrol, for example, at a price of 85 meticais (€1.14) per litre and diesel at around 80 meticais (€1) — will remain in place until the end of April, as the stocks were imported at prices in force before the beginning of the conflict,” Tivane added. Mozambique also has around 85,000 tonnes of fuel at ocean terminals, which can be cleared if necessary. In the Economic and Social Plan and State Budget (PESOE) for 2026, the Government had forecast Gross Domestic Product (GDP) growth of around 2.8%, with inflation at approximately 4.8%, but these projections may now be affected by the development of the conflict in the Middle East.

[paywall]

“The impacts on economic growth will depend on the intensity and duration of the conflict. The Council of Ministers noted that, under a moderate scenario, the Mozambican economy — if prices continue to rise significantly, for example exceeding the threshold of US$120 per barrel — could eventually face visible impacts on the cost structure of small and medium-sized enterprises,” Tivane said. For the Mozambican Government, if the conflict continues, the prospects for economic recovery could be affected, with the pace becoming “slower”.

In an extreme scenario in which the price of a barrel of oil exceeds US$140, the country’s economy could even register negative growth. The Government is studying the possibility of activating the stabilisation fund to address the social and business impacts of this war, with the executive promising to monitor the situation in order to mitigate a potential shock to the national economy.

[/paywall]