Mozambique: Fuel prices may rise again this week – Carta

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Mozambique: Fuel prices may rise again this week – Carta

2:36 CAT | 13 Jun 2022

File photo: Lusa

Fuels and derivatives will rise in price again this week. In response to an “external shock”, the government, through its Energy Regulatory Authority (ARENE) will increase prices, ratcheting the pressure on consumers’ budgets ever higher.

‘Carta’ has learned from a credible source that the price of diesel will rise to 96.00 meticais, and that of gasoline to 93 meticais.

The petrol stations do not like these prices, and last week proposed to the government that diesel should go up from the current 79.00 to 103.00 meticais per litre, and gasoline from 83.00 meticais to 98.00 meticais. The proposals were rejected by the executive.

The proposed increases still do not cover petrol stations’ losses, now constituting a government debt of around US$140 million. If this amount, registered in a Compensation Fund, were paid to fuel operators, they might breathe a sigh of relief. But the Fund seems to have no money, another source familiar with the matter said.

Some companies have not yet decided whether or not to place orders at the end of June for imports that will arrive in August. Mozambique has around 30 registered petrol stations but only 22 are active, and not all of those have imported in recent months, because of cash-flow difficulties.

Some of them are silently threatening to close their doors if the government does not pay them at least part of the compensation they are owed. For now, Mozambique has enough fuel to last until August, but from then on, the future is anyone’s guess.

By Marcelo Mosse

Source: Carta de Moçambique