Maputo, 10 Apr (AIM) – Felisbela Nhate, Mozambique’s National Director of Hydrocarbons and Fuels, has warned that the cost of air transport may increase in the near future, following the sharp rise in the price of jet fuel on the international market.
According to Nhate, speaking to reporters on Thursday, in Maputo, in the presence of fuel importers and distributors, jet fuel has registered one of the largest recent variations, rising from approximately 769 1,595 US dollars per tonne.
She explained that worsening prices are largely associated with geopolitical instability in the Middle East, one of the main fuel-supplying regions.
The United Nations Conference on Trade and Development (UNCTAD) had also warned that Mozambique is among the countries likely to be hit by rising costs because of the US-Israeli war of aggression against Iran.
The Strait of Hormuz, which connects the Persian Gulf to the Gulf of Oman, is the transport route for around 20 per cent of globally traded oil and a significant portion of liquefied natural gas shipped by sea. It had been closed by Iran, before a shaky ceasefire which is supposed to cover a period of two weeks, while negotiations are taking place.
This scenario, she said, could directly impact the operational costs of airlines and, consequently, the fares charged to passengers.
“The worsening political context in the Middle East has had a direct impact not only on the price of the product itself, but also on freight costs”, Nhate said.
According to Nhate, the cost of transporting a barrel of oil has risen from approximately five dollars in January to about 13.7 dollars, which directly influences the CIF Maputo price, which is the basis of the fuel import invoice.
“The freight cost is included in the CIF calculation equation, which is the price reflected in our import invoice,” she explained.
Jet fuel plays an essential role in the aviation sector, being used in commercial and cargo aircraft, and its price structure depends on several factors, including the international cost of refined petroleum products, transport and logistics expenses, exchange rates, storage costs, operator margins, and tax burdens.
In Mozambique, the fuel pricing mechanism is regulated by a specific legal framework, aiming to ensure transparency and balance in the market, with the Energy Regulatory Authority (ARENE) being the body responsible for defining and updating prices.
Given the current context, Nhate admitted the possibility of regulatory intervention. “We have pressure on our pricing mechanism and some need for government intervention to mitigate the impacts,” she said.
The director also warned of risks associated with the increase in the import bill, including reduced liquidity for distributors, restrictions on access to bank financing, and potential challenges in the regular supply of fuel to the country.
At the regional level, several countries in Southern Africa have already adjusted fuel prices, reflecting the widespread impact of the international crisis.
Faced with this scenario, the Mozambican authorities guarantee that they are evaluating measures to mitigate the economic effects without compromising the stability of the sector.
(AIM)
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