Maputo, 6 May (AIM) – Mozambican Prime Minister, Benvinda Levi, on Tuesday, told the country’s parliament, the Assembly of the Republic, that the government may adjust the fuel price as result of its upward trend in international markets.
About 80 per cent of Mozambique’s fuel imports pass through routes connected to the Strait of Hormuz, which means that the impact of the war in the Middle East is potentially disastrous for the country’s economy.
The Strait of Hormuz –which is responsible for the daily flow of almost 20 percent of the world’s oil sales – has been blocked, preventing the passage of ships carrying gas and oil.
According to the Prime Minister, who was answering questions on Wednesday from deputies in the country’s parliament, the Assembly of the Republic, the current international situation is marked by uncertainty regarding the end of the conflict in the Middle East.
“This situation has caused an upward trend in fuel prices in international markets, from which Mozambique is not immune. Mozambique, being a net importer of fuels and taking into account this international situation, will face gradual adjustment of the prices of these products at the national level as inevitable”, she said.
For several weeks, the country has been facing difficulties in fuel supply, with stations closed and widespread lines, as well as limits on the purchase of diesel or gasoline and a reduction in the supply of transport.
The government had also admitted that the fuel crisis in the country is related to shortage of foreign currency (particularly US dollars), which means that “the fuel is not making its way from the ports to the fuel pumps because the companies that own the pumps are facing treasury problems.
Under normal circumstances, fuel distributors use bank guarantees, denominated in US dollars, to pay for the fuel they order at the ports. Some distributors are unable to acquire these guarantees from the commercial banks.
According to Levi, in order to minimize the negative impacts of the increase in fuel prices on the lives of citizens and the economy, the government will implement a set of multisectoral measures.
“We reiterate our exhortation for everyone to continue to follow the evolution of the situation with serenity and to refrain from propagating messages that could generate panic in society,” she said.
For his part, the Minister of Economy, Basílio Muhate, said that the government will subsidize public transport to contain the impact of the fuel crisis, marked by shortages and limitations on imports.
“The Government intends to use financial stabilization mechanisms 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 the supply crisis”, he said.
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