Fuel retailers acknowledge supply fluctuations but say no ‘stock-outs’ in Mozambique

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Fuel retailers acknowledge supply fluctuations but say no ‘stock-outs’ in Mozambique

1:30 CAT | 24 Mar 2025

File photo: Rádio Moçambique

Fuel retailers in Mozambique today admitted there were “fluctuations” in the supply and provision of fuel in the country, but guaranteed that there was no stock-out [complete lack of product for sale].

“At the moment we are facing some fluctuations in the supply of fuels. (…) All I can say, in relation to these fluctuations, is that at some point, some filling stations will be without one of other of the fuels,” explained the president of the Association of Fuel Retailers of Mozambique (ARCOMOC), Nelson Mavimbe, in an interview with Lusa.

Last week, thousands of Mozambicans flocked to gas stations in the city of Pemba, Cabo Delgado province, in search of gasoline and diesel, which are in short supply, leading to price speculation.

The fuel shortage in Pemba was the result of the closure of the road connecting Pemba to Nampula province by the recent Cyclone Jude, and by the reduced local storage capacity.

Mozambican president, Daniel Chapo suggested transporting fuel from Nampula to Cabo Delgado by sea. “We may have challenges in Cabo Delgado, such as the issue related to fuel, and in this regard we are already organising ourselves so that, by means of coastal shipping, by sea, we can load the fuel from the port of Nacala [Nampula province] to Cabo Delgado and this loading will be possible until we restore the road,” he suggested.

The president of the retailers’ association told Lusa that the availability of fuel at gas stations is likely to return to normal, pointing to “efforts” by the government and distributors to make products available.

“Until last week, it was normal to go to a gas station and only find diesel, but no gasoline. (…) I wouldn’t say it’s a stock-out, because since then the situation has been at least normalized,” Mavimbe said.

Mozambique has around 900 fuel retailers that provide for almost 27,000 jobs in the country. Around 200 of these 900 retailers are members of the ARCOMOC.

The president of the organization complained about the lack of financing lines for this sector, and the existing ones, he said, were “not sustainable” because of the “high interest rates”.

“We also have tax burdens that are a concern,” Mavimbe said, pointing to progress made by the government in finding solutions to the problems highlighted.

“As retailers, we complain about the inspections. There is no consistency in this inspection thing. There are several teams that carry out inspections at the gas stations and this is embarrassing. We are not saying that we should not be inspected, but it is important that there is only one inspection and that it is coordinated,” he added.

The fuel retailers also asked the government to review their profit margin in the fuel business, complaining that this has not happened “for four years”, and taking into consideration the stricture that, according to Mavimbe, this profit margin should be reviewed annually.

The Association of Fuel Retailers of Mozambique is further asking the government to ensure exchange rate stability and to find “ways” to end the shortage of foreign currency and to seek better lines of financing with more “balanced” policies in terms of interest rates.

Source: Lusa