27 June 2018

Mozambique: Price of Petrol Rises, That of Cooking Gas Falls

Maputo — The Mozambican government on Wednesday announced an increase in the price of petrol, but a decline in the price of butane cooking gas, taking effect as from Thursday.

The price of a litre of petrol rises from 66.03 to 66.55 meticais (from 1.11 to 1.12 US dollars, at current exchange rates), an increase of 0.8 per cent.

The price of cooking gas (butane or LPG) falls by one per cent, from 60.94 to 60.33 meticais a kilo.

The prices of diesel and of kerosene remain unchanged at 62.92 and 50.33 meticais a litre respectively.

The government reviews fuel prices every month, and changes them, if the cost of importing fuel, expressed in meticais, has risen or fallen by more than three per cent. The determinant factors in this calculation are the world market price of refined fuels, and the exchange rate of the metical against the dollar, the currency in which fuel imports are denominated.

The diesel used in key sectors still enjoys a subsidy. Those sectors are agriculture, artisanal fishing, electricity generation in isolated places not connected to the national grid, and passenger transport.

The price of oil has begun to fall, rather than rising towards 100 dollars a barrel as had been feared. The benchmark Brent crude was quoted at 76.95 dollars a barrel on Wednesday, compared with 78 dollars a barrel on 16 May, the last time Mozambican liquid fuel prices were altered.

The metical has continued to appreciate slightly against the dollar, and these two factors have given the Ministry of Mineral Resources and Energy some breathing spaces, allowing fuel prices to remain almost static.

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