Mozambique: NGO questions rise in price for fuel imported before Ukraine war

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Mozambique: NGO questions rise in price for fuel imported before Ukraine war

8:23 CAT | 24 Mar 2022

File photo: Lusa

Mozambican non-governmental organisation (NGO) Centre for Public Integrity on Wednesday questioned the argument of the war in Ukraine used by the Mozambican authorities for the rise in fuel prices, arguing that the product on sale was imported before the conflict.

“The stock that is currently being sold on the market was acquired at the cost previously in force, which is lower than the current one,” the Centre for Public Integrity (CIP) said in an analysis of the rise in the price of fuel in the country.

Mozambicans, it continues, may be paying more for fuel acquired at a much lower cost.

“There are extraordinary gains by the players in the wholesale chain, to the detriment of the public and with the Government’s consent,” the NGO said.

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The organisation believes that a rise in the cost of fuel in Mozambique should happen in mid-April, as the authorities announced earlier this month that the country had sufficient quantities for 30 days, imported before the Russian invasion of Ukraine.

CIP notes that measures to mitigate the cost of fuel announced by the government on the eve of the rise in the price of these products have not had a significant effect.

It is expected, CIP continues, that “the Government will inform Mozambicans what its strategy will be, when international prices reduce,” because the “measures implemented to mitigate the impact of the increase have not been very effective in reducing fuel costs, having, on the contrary, caused a 12 percent increase.”

The CIP defended a stabilisation fund to cushion negative external shocks aimed at minimising the impacts of price increases on the public.

“As can be seen from the measures announced, it was not clear how the Government uses such a fund to minimise the effects of the rise in international prices in the present crisis and previous ones,” the text reads.

Mozambique’s Energy Regulatory Authority (Arene) a week ago announced new fuel prices, citing the rise in crude oil prices on the international market as the reason for the increase.

According to the new table, the price of a litre of petrol rises from 69.94 meticals (0.99 euros) to 77.39 meticais (just over 1 euro), the litre of light oil rises from 47.95 meticais (0.68 euros) to 50.16 meticais (0.71 euros) and that of diesel from 61.71 meticais (0.88 euros) to 70.97 meticais (just over 1 euro).

The kilo of cooking gas (LPG) increases from 71.2 meticais (more than one euro) to 80.49 (1.1 euros) and natural gas for vehicles (CNG) increases from 32.69 meticais (0.45 euros) to 37.09 meticais (0.52 euros).

Source: Lusa