Maputo — The Mozambican government has approved the creation of the National Petroleum Products Procurement Company (ENAPP), a publicly-owned company which will be responsible for procurement and management of fuel supply in the country's market.
According to the government spokesperson and Minister of State Administration, Inocêncio Impissa, speaking to reporters on Tuesday after a meeting of the Council of Ministers (cabinet), the company will be focused on integrated management of services for the national procurement process of petroleum products destined to supply the domestic market.
"The company has its own legal personality along with administrative, financial, and patrimonial autonomy, with a national scope and headquarters in the city of Maputo. With the creation of this company, the country gains a new model, abandoning the current model in use for 30 years, which was already in need of refinement", he said.
Impissa explained that the company's activities include the programming, contracting, coordination, and monitoring of fuel supply operations, which until now involved private actors via Imopetro.
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"The current fuel crisis made us realize certain things. The creation of the company represents a profound change to the model currently utilized by the country in procuring fuels. The change intends to grant the State greater control over the import and supply chain of fuels, considered strategic for the functioning of the national economy", he said.
The spokesperson said that the government believes that the company will improve efficiency in supplying the market and reinforce response capacity in emergency situations, allowing for the adoption of solutions that safeguard the public interest and the continuity of the supply of fuels and other petroleum products.
"The new company should promote the participation of already licensed operators awaiting the start of their activities, contributing as well to job creation", he added.
Recently, the government announced a 50 million US dollars fund to secure the import and distribution of liquid fuels, following a crisis affecting the sector, influenced by the US-Israel aggression war against Iran and the closure of the Strait of Hormuz - which is responsible for the daily flow of almost 20 percent of the world's oil sales.
The government has also admitted that the fuel crisis in the country is related to shortage of foreign currency (particularly US dollars), which means that "the fuel is not making its way from the ports to the fuel pumps because the companies that own the pumps are facing treasury problems."
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