Mozambican oil companies complain of “dramatic” situation

The Mozambican Association of Oil Companies (Amepetrol) has deemed “dramatic” the sector’s situation, as it is buying more expensive fuels, but there are no price updates at filling stations.

“We have absolute faith that the government understands our drama, that it is sympathetic and will find mechanisms to make the companies continue to operate with normality,” the association president, Michel Ussene, told Lusa.

Ussene reinforced Amepetrol’s warnings that have been recurrent since the beginning of 2022.

The issue is that there are no price updates at filling stations, which are below the purchase price, accumulating a state debt with distributors.

The president of Amepetrol pointed out that the occasional drops in the price of crude oil in the international market have not eased import costs in Mozambique because they are offset by the rise in logistics costs, such as transport and insurance.

“We are looking for mechanisms that do not harm the final consumer, nor the Government, nor the companies so that there is fuel in the whole market,” he emphasized.

That “equation,” he continued, may include reducing taxes levied on petroleum products.

“We understand that perhaps the best mechanism is to reduce the tax burden, momentarily, until the international situation changes,” he stressed.

The responsible referred that there is no risk of rupture in the fuel stations, even more so during the rainy season, with Mozambique in the path of several storms.

A source from the Energy Regulatory Authority (Arene) also denied the risk of interruptions in fuel supply in the country, as has already happened, for example, in Malawi.

With information from Lusa

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