Mozambique: Q1 revenue from ruby exports down 30% YoY to $5.1M - central bank
Minister of Mineral Resources guarantees no interruption in fuel supply
3:12 CAT | 07 Mar 2017
Folha de Maputo (File photo) / Minister Letícia Klemens
Last week, the Mozambican Association of Petroleum Companies issued a letter in which it says that the current system of compensation for fuel prices is broken because it does not keep pace with changes in prices in the international market.
Due to the lack of updating, companies say they have borne high costs of importing fuel which are already unsustainable and could lead to disruption of the fuel supply.
“We emphasize the essential and urgent nature of changing the current subsidy system, ending the system of price compensation. Maintaining the current system for any length of time may cause the entire industry to collapse and jeopardize the economic sustainability of the entire country,” the letter reads.
In an exclusive interview with O País, Mozambique’s Minister of Mineral Resources and Energy Leticia Klemens confirmed that she had received the letter and was looking for solutions. She was confident, however, that there would be no fuel shortage.
In October last year, the Ministry of Mineral Resources and Energy announced an increase in the price of gasoline from 47.52 meticals to 50.02 meticais a litre and diesel from 36.81 meticals to 45.83 meticais.
Oil companies say these prices are below the purchase cost both overseas and in neighbouring countries like South Africa, where gasoline is sold at the equivalent of 73 meticais per litre on average.
Source: O País
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