Mozambique: Government says increased fuel prices to avoid collapse – Watch

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Mozambique: Government says increased fuel prices to avoid collapse – Watch

6:59 CAT | 26 Oct 2021

Photo: TVM

Minister of Mineral Resources and Energy, Max Tonela, said on Monday that the increase in fuel prices in the country had prevented a collapse in supply, as importers and distributors in the sector were operating at a loss.

“Taking into account the evolution of the international price” and also the exchange rate, the price hike was necessary “to allow importing and distributing companies to review prices, to ensure continuity of supply, guarantee security and replenishment of stocks,” Tonela said.

The minister was speaking on the sidelines of the sixth coordinating council of the Ministry of Mineral Resources and Energy in Pemba, capital of Cabo Delgado province.

“The level of loss was so high that some of the companies were getting into debt with the banks, to make imports, without the capacity to make the replacement,” he explained.

Minister Tonela however indicated that the government was maintaining its 12 meticais (€0.16) per kilo subsidy on the price of cooking gas.