22 February 2008
Maputo — The Mozambican Federation of Road Transport Associations (FEMATRO) has launched a tender to select the fuel distribution company that will supply subsidized diesel to minibus operators in the country's main urban centres.
Following the Maputo riots against fare increases on 5 February, the government agreed that, instead of putting the minibus fares up, it would compensate the minibus owners through a subsidy. Currently the price of diesel is 35.35 meticais (1.47 US dollars) a litre, but for the minibuses that provide urban passenger services *colloquially known as "chapas"), the price has been frozen at 31 meticais a litre.
FEMATRO is seeking a fuel supplier that can provide an electronic record of the amount of fuel supplied. FEMATRO will provide the supplier with a list of the vehicles eligible for the subsidized diesel.
The fuel companies that bid for this contract must have an on-line system through which FEMATRO "and its partners" (i.e. the government) can, at any moment, obtain information on the amount of fuel supplied during a particular period.
The system is thus being designed to ensure that only bona fide transport operators can benefit from cheap fuel. FEMATRO has already made it clear that only those vehicles licensed by the municipal authorities will be entitled to the subsidized fuel.
A source in the Finance Ministry told AIM on Friday that the beneficiaries must also possess the tax identification number required for paying income and profit taxes, and must be able to show that they have already paid last year's taxes.
The companies most likely to bid for this tender are BP and the Mozambican state fuel distributor, Petromoc. Both companies held meetings with FEMATRO to discuss the issue on Tuesday.
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