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State Spent $1.6 Million to Contain Rise in Transport Fares

State Spent $1.6 Million to Contain Rise in Transport Fares

The State disbursed around USD 1.6 million in May to compensate passenger transport operators in the Maputo metropolitan area, in a measure aimed at preventing an increase in fares following the rise in fuel prices, according to Lusa.

Data from the Maputo Metropolitan Transport Agency (AMT) indicate that the support granted to transport operators totalled 110.2 million meticais, covering different categories of semi-collective and collective passenger transport vehicles.

The measure was implemented after the sharp increase in fuel prices recorded on 7 May, when diesel prices rose by 45.5% and petrol by 12.1%, in a context marked by disruptions in international markets linked to the conflict in the Middle East.

According to the AMT, 15-seat semi-collective transport vehicles received the largest share of the support, absorbing around half of the total amount disbursed. Vehicles with capacities between 26 and 35 passengers also received a significant portion of the compensation, while larger buses benefited from supplementary support.

The Government justified the intervention with the need to protect public transport users from the impact of higher operating costs and to prevent additional pressure on household living expenses. At the time the measure was announced, the Secretary of State for Transport and Logistics, Chinguane Mabote, explained that the subsidy aims to minimise the social impact of rising fuel prices and ensure the continuity of passenger transport services.

The compensation programme initially covers licensed operators in provincial capitals and the Maputo metropolitan area, under an agreement between the Ministry of Transport and Logistics and the Mozambican Federation of Road Transport Associations (FEMATRO).

At the same time, authorities have been strengthening efforts to formalise the sector. In May, the Maputo Municipal Council announced that it would finance professional driving licences for around 2,500 unlicensed semi-collective transport operators, locally known as “chapas”, with the aim of accelerating licensing procedures and improving service quality for passengers.

These measures come during a particularly challenging period for the transport sector. In April and May, the country faced fuel supply constraints, including temporary closures of fuel stations, restrictions on diesel and petrol sales, and reduced availability of public transport in several regions.

Maintaining subsidies for transport operators represents an additional strain on public finances in an effort to contain inflationary pressures linked to the fuel crisis. However, the continuation of these compensations will depend on the evolution of international energy prices and the State’s capacity to sustain support measures amid growing fiscal pressure.

Source: Diário Económico

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