Increase in fuel prices makes life in Mozambique more difficult

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Increase in fuel prices makes life in Mozambique more difficult

2:13 CAT | 31 Mar 2017

DW / Maquinino market, in Beira: With rising fuel prices, prices of products and transport have also become higher. Complaints of the population rise in tone. Economist fears that the standard of living will worsen.

The effects of the Mozambican government’s fuel price hike a week ago are already being felt. Some food items are no longer on sale in Quelimane markets in the central province of Zambézia because transport is more expensive and producers are refusing to send their produce to the city.

“The rise in the price of fuel is stopping people bringing produce to Quelimane,” said trader Alberto Soares.

Other foods price have also risen. A kilogram of flour now costs almost 80 meticais (the equivalent of EUR1.10 ), when previously it cost 50 meticais. The reno potato is now 50 meticais a kilogram, as opposed to 40 meticais.

Things could get worse

Bonde Carlos is another trader who is worried about falling profits. ” We traders will never develop with this rise in prices. We’ll always be going backwards,” he says.

Mosambik, Autofahrer Francisco Morais (DW/M. Mueia) — Vendor Bonde Carlos is worried about business

Economist Horácio Mucuveia says the situation could lead to worse living standards for the population.

“With a rise in the price of fuel, motorists are going to value transport more, so there will be difficulty for the population to access food. The impact on Zambezia’s population is negative,” Mucuveia says.

Appeals to the government

The price of fuel in Mozambique has risen twice in less than six months. In some places, a litre of gasoline already costs 60 meticais (more than EUR0.80), more than the cost stipulated by the government.

Motorist Francisco Morais says the government “must reduce expenses, so that the populations can feed the families in their houses”.

Mosambik, Händler Bonde Carlos (DW/M. Mueia) — Francisco Morais says those who govern “must reduce expenses”

Economist Mucuveia is, however, not optimistic about a drop in the price of fuel. “Because of the economic crisis, the government is always going to raise prices in order to prop up the economy,” he says. “Fuel in Mozambique will never go down in price.”

But back in the market, trader Alberto expects better days and puts his hopes in the government. “We want the government to resolve this. There is no war, cars are moving normally on the roads; we want people’s lives to improve.”

Source: Deutsche Welle