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Autogás: Vehicle Gas Expansion Project Delayed Due to High Costs

Autogás: Vehicle Gas Expansion Project Delayed Due to High Costs

Vehicle gas is the cheapest and safest form of fuel for the environment, which is currently costing so much to expand throughout the country. This is the finding of João das Neves, Executive Director of Autogás, the company that leads the process of converting and fuelling gas-powered vehicles in Mozambique.

João das Neves points out that a gas refuelling station costs around 1 million dollars, which is unsustainable because the amount needed to finance the business is taken from banks, which don’t make it easy.

“A gas station still costs around a million dollars and it’s not easy to invest a million dollars in something you’re not sure will pay off in the medium and short term. If we have to raise finance locally and with interest rates hovering around 30 per cent, it’s totally impossible to grow under these conditions,” said Das Neves.

The source revealed that the company he heads is currently finalising one of its gas filling stations located at ETM in Maputo.

“It was a challenge years ago because of the financing, but so far we have all the financial availability to complete the station, which is expected to be finished at the beginning of next year.”

The executive director of AutoGás took the opportunity to remind the public and motorists in particular that cars can be converted to run on gas for a minimum price of 45,000 Meticais.

“This means that there has been a reduction of almost 35 per cent, since some time ago the conversion cost almost 80,000 meticais. The cars that were in high displacement are now at a significantly affordable cost, in order to expand and gain more stations.”

Jornal Visão Moçambique

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