London — The International Monetary Fund (IMF) has argued that the Mozambican government was correct to increase fuel prices. In a press release received by AIM on Thursday, the Bretton Woods institution stated, "the raising of fuel prices will eliminate an expensive and very inefficient subsidy".
On Wednesday, the government announced that the cost of a litre of petrol would rise from 50.02 meticais (about 74 US cents, at current exchange rates) to 56.06 meticais, an increase of just over 12 per cent. For diesel, the rise is 13.2 per cent: a litre now costs 51.89 rather than 45.83 meticais.
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