War in Ukraine makes fuel imports more expensive in Mozambique

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War in Ukraine makes fuel imports more expensive in Mozambique

3:28 CAT | 20 Jun 2022

Photo: O País

The war in Ukraine is making fuel imports more expensive. The daily cost of docking a ship in national ports has increased from US$22,000 to US$55,000, with freight costs rising US$200,000 to US$550,000.

The war in Europe is having a strong impact on Mozambique. The crisis in Ukraine is making fuel scarce, with Mozambique and many other countries no longer having access to Russian fuel.

As a result of the crisis, national ports have registered demand greater than installed capacity, an ideal opportunity for port companies to raise the costs to vessels waiting to dock.

The country must continue to import fuel, but the continuous rises in prices on the international market may reduce the duration of purchase contracts by half by way of mitigation.

IMOPETRO already expects to see price of fuel falling.

Meanwhile, the Mozambican Petroleum Importer has launched a tender and already secured a proposal for a potential new fuel supplier.

The new fuel supplier is still subject to approval by the Liquid Fuels Acquisition Commission. Only then will contracts be signed for the start of fuel supply.

Source: O País