Price of petrol falls

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Price of petrol falls

8:49 CAT | 20 Dec 2017

In file CoM

The Mozambican government has reduced the price of petrol by 2.6 per cent, with the new price taking effect as from Wednesday, according to a press release from the Ministry of Mineral Resources and Energy.

The price of a litre of petrol falls from 62.72 meticais (about 1.06 US dollars) to 61.12 meticais. The price of the compressed natural gas used to power vehicles falls by 1.2 per cent, from 29.75 to 29.39 meticais per litre equivalent.

The price of other fuels remains unchanged. Diesel remains at 56.43 meticais a litre, and a litre of kerosene still costs 44.73 meticais. There is also no alteration to the price of domestic cooking gas, which remains 70.11 meticais per kilo.

The Ministry statement points out that, over the past six months, the price of a barrel of crude has risen substantially on the world market – from 47.58 dollars in June, to today’s price of 63.56 dollars.

The statement adds that, despite the gradual rise in the price of oil, the government remains committed to protecting key economic and social sectors from the full impact of fuel prices. Thus the government will continue to subsidise the diesel used in passenger transport, in agriculture, in fishing, and in generators used to produce electricity in districts not yet on the national grid.

The government reviews fuel prices every month, and changes them whenever the cost of acquiring fuel, expressed in meticais, moves in either direction by more than three per cent. The determinant factors are the import price, and the exchange rate of the metical against the US dollar.

The metical has been slowly appreciating against the dollar. A month ago, the average exchange rate quoted by the Bank of Mozambique was 61.39 meticais to the dollar.

Source: AIM