Mozambique: 5 small gas stations stopped importing, as high fuel prices reduce purchase capacity

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Mozambique: 5 small gas stations stopped importing, as high fuel prices reduce purchase capacity

2:24 CAT | 01 Jul 2022

File photo: Notícias

The constant rise in fuel prices on the international market is reducing the capacity of some Mozambican gas stations to continue importing stock.

The Mozambican Petroleum Importer (IMOPETRO) points out that a consignment of fuel that in the past cost US$50 to US$80 million now costs around US$200 million.

João Macanja, director of IMOPETRO, explained to ‘Notícias’ that five small gas stations stopped importing fuel because of the deteriorating situation.

In June, the crude that has served as a reference for the prices of refined products was oscillating on the international market between US$100 and US$120 a barrel, trading at US$117 on Wednesday, June 29.

João Macanja notes that Mozambique and other countries could purchase a ton of gasoline for US$761 in February, but by March it had risen to US$822, reaching US$1,068 a ton in May.

This means that, in February, a litre of gasoline arrived at Mozambican ports at 38 meticais; in March it was 41 meticais; in April, 47 meticais; and in May, 54 meticais.

“It is important to explain that our country buys fuel through a cooperative called IMOPETRO, and this has the advantage enabling reduced acquisition costs through economies of scale, because the greater the quantity purchased, the greater the discount,” Macanja observed.

He added that, under the current legal framework, the country makes acquisitions through a public tender, complying with international standards, which ensures greater transparency in the process.

He reassured his interlocutors that, despite the erosion of the import capacity of some companies, the country had enough fuel for the next few days.

“Our import takes place every 22 days. At the moment we are talking, we have gasoline for 28 days, jet fuel for 26 days and diesel for 37 days,” he said.

The IMOPETRO director pointed out that the war between Russia and Ukraine had exacerbated a problem that had already been ongoing since the end of last year, when the post-Covid opening of markets began influencing the demand for fuel without any accompanying increase in production, which had meant rising prices.

The manager of the only fuel importer in Mozambique warns that, if the war between Russia and Ukraine continues, the world will continue to feel the impact of high fuel prices.

“We know that there are solutions that are being considered, such as, for example, increasing production by some producing countries, but this alone will not have much impact on supply. There are also some moves to place some production from Venezuela and Iran on the market, but we believe that will not be enough to stabilise the market,” Macanja predicted.

Source: Notícias