The increase in fuel prices is likely to slow the recovery of poor urban families in Mozambique who were benefiting from relief from restrictions associated with Covid-19 to improve nutrition, a humanitarian watchdog report warns.
“The 12% and 15% increases in the prices of petrol and diesel, respectively,” announced on 16 March, “is expected to increase the cost of living and slow the economic recovery, particularly for poor urban families,” reads the document from the Famine Early Warning Network (Fews network) that assists humanitarian operations.
The new prices reflect the increase in crude oil prices on the international market.
“The national bakery association also announced that bread prices would soon increase due to the increase in global wheat prices. The increase in fuel and bread prices are expected to reduce the purchasing power of households, although the impact of ongoing mitigation measures is yet to be determined,” the report noted.
The document said that the increase in prices has caused public transport “to temporarily stop operations in protest at the rise in operating costs,” in several parts of the country.
The increase is expected to be reflected “in transport costs and the cost of transactions of goods and basic foodstuffs.
The impact caused by fuel prices comes at a time when Mozambican agricultural production is expected to fall compared to previous years due to adverse weather conditions.
The Fews network also predicted that the start of the harvest “will be delayed by one month in most of Mozambique, except in Maputo province, where the main harvest has already begun.”
“The delay in harvesting will likely prolong the lean season and prevent food prices from falling seasonally,” it concluded.
In Mozambique, more than 2.9 million people face severe food insecurity and severe malnutrition affects almost half of children under five years old, according to World Food Programme (WFP) data.
Source: Lusa
