Good afternoon. Fuel queues are back in Maputo and Matola. That should not be happening if the problem were simply one of supply.
According to energy sector regulator ARENE, Mozambique has 110,000 tonnes of diesel and 40,000 tonnes of petrol in stock. Savana reports that around 150,000 tonnes of fuel are sitting in bonded warehouses or under “financial hold”, meaning they can only be released to distributors once bank guarantees are presented. The fuel exists. The problem is getting it into the market.
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Tom Bowker
Zitamar News
That makes this a different kind of shortage. It is a shortage created by price regulation, foreign currency, bank guarantees and political fear.
Fuel distributors say current prices do not cover import costs. They want petrol to rise to at least MZN120 ($1.88) per litre and diesel to MZN130 ($2.03). The government is resisting another immediate increase, because it fears the social consequences. Fuel price rises quickly become transport price rises, food price rises and political anger.
The government tried to manage the last crisis by leaning on Petromoc. In May, the state-owned fuel company was told to raise its market share quota from 24% to 42% and supply retailers beyond its usual network. That was never a sustainable solution. Savana reports that Petromoc became overwhelmed and has now returned to its previous quota.
