Maputo, 7 May (AIM) – Mozambique’s Energy Regulatory Authority (ARENE) has announced an increase in the prices of the main liquid fuels by up to 45, 5 percent, taking effect as of Thursday.
The sharpest rise is for diesel. The price of diesel rises from 79.88 to 116.25 meticais a litre (from 1.23 to 1.81 US dollars at the current exchange rate). This is a rise of almost 46 percent.
The price of a litre of petrol falls from 83.57 to 93, 86 meticais – a rise of 12.1 percent. A litre of kerosene, which used to cost 66.86 meticais, now costs 97,56 meticais – a rise of 46 percent.
The price of Vehicular Natural Gas (CNG) rises from the previous 41.11 meticais per litre to 52,73 meticais. The price of LPG cooking gas rises from 86,05 to 87,82 meticais per kilo.
According to Paulo da Graça, ARENE chairperson, speaking to reporters on Wednesday after a meeting of the Council of Minister (cabinet), the adjustment of fuel prices range from 1.7 meticais to 36.37 meticais per liter.
“This update continues to place Mozambique with prices at low levels, compared to the prices practiced in the southern African region. The government, ARENE, will continue to monitor the evolution of prices in the market, as well as develop supervisory and inspection actions to prevent stock shortages and speculative practices that may occur in the market”, he said.
Da Graça explained that this update had been announced by the government to start taking place “between the end of April and the beginning of May, taking into account the price practiced at the international market level. Since the beginning of April, Mozambique has been receiving these products with new prices practiced internationally.
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.
The Prime Minister, Benvinda Levi, had told the country’s parliament, the Assembly of the Republic, that the fuel prices would be adjusted as result of its upward trend in international markets, resulting from the US-Israel aggression war against Iran.
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.
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