Mozambique: President Chapo considers suspending mining amid Manica's 'environmental disaster' – ...
Screen grab: VOA Portugues
The Mozambican Association of Fuel Companies (AMEPETROL) is demanding a steep increase in the price paid by Mozambican consumers for liquid fuels
AMEPETROL argues that the government has continued to run up a huge debt to the fuel companies, which has now reached about 120 million US dollars.
The fuel price structure in Mozambique, according to AMEPETROL Chairperson Michel Ussene, speaking at a Maputo press conference on Thursday, does not respond to the rapid variations in price on the international market – with the result that the prices Mozambican companies charge their customers is below the cost price, and so is effectively subsidized.
“Probably the public in general is not aware that the fuel it has been purchasing results from a subsidy”, said Ussene. “This subsidy the public has been receiving means that the government is in debt to the distribution companies”.
If the price at Mozambican filling stations were to reflect the real international price of fuel, then a litre of diesel would cost 97.87 meticais (about 1.53 dollars, at the current exchange rate), and a litre of petrol would cost 97.19 meticais.
Currently diesel costs 70.97 meticais a litre at the pumps and petrol costs 77.39 meticais. Thus Ussene is calling for a price rise of 38 per cent for diesel and 26 per cent for petrol.
He warned that the current situation is not sustainable – the fuel distribution companies would be unable to remain in business, unless these problems were solved.
The solution must come quickly, since the companies only have fuel reserves to last for less than a month.
“In October and November, a barrel of crude oil on the international market shot up from 70 to 80 dollars, but in recent months because of the conflict between Russia and Ukraine, the same barrel costs 110 dollars”, said Ussene.
He pointed out that fuel is now much cheaper in Mozambique than in South Africa or Zimbabwe. This is an incentive for motorists in the neighbouring countries to cross the border and fill their tanks in Mozambique.
Leave a Reply
Be the First to Comment!
You must be logged in to post a comment.
You must be logged in to post a comment.