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Government Seeks Alternative Fuel Import Sources Amid Middle East Crisis

Government Seeks Alternative Fuel Import Sources Amid Middle East Crisis

The government announced on Wednesday, May 6, that it is seeking alternative sources for fuel imports in light of the conflict in the Middle East and the blockage of the Strait of Hormuz, urging citizens for understanding amid the crisis.

“As an alternative, we have been working with other countries to explore the possibility of agreements and partnerships between governments for fuel supply. This is a recent situation, and efforts are underway at the government level to secure these alternative sources from other fuel-producing countries,” said Minister of Economy Basílio Muhate.

Speaking in Parliament, the minister explained that since transit disruptions began in the Strait of Hormuz, Mozambique has been sourcing from refineries located outside the region, using maritime routes that do not pass through the affected area.

“We appeal for everyone’s cooperation. Fuel shortages affect ambulances, transport, and families who need food — in short, they affect us all. This is not a situation fully under our control; it requires a collective effort. As a government, we are doing our part, but we ask for collaboration, calm and unity from Mozambicans,” he added.

Around 80% of Mozambique’s fuel imports transit through the Strait of Hormuz from the Middle East, where shipping has been disrupted by the war involving the United States and Israel against Iran. The country has faced fuel supply difficulties for several weeks, with stations closing nationwide, widespread queues, limits on diesel and gasoline purchases, and reduced transport availability.

Prime Minister Benvinda Levi reiterated on Tuesday, May 5, that the government will move forward with a gradual adjustment of fuel prices due to the ongoing conflict, urging the public to avoid spreading panic-inducing messages.

“Mozambique, as a net importer of fuels, and given the current international context, will inevitably have to gradually adjust domestic fuel prices,” she warned during a parliamentary Q&A session.

Finance Minister Carla Loveira had previously stated, on March 25, that the government has €5.2 million available in a stabilization fund to help cushion a potential increase in fuel prices resulting from the Middle East conflict.

“This is a fund that has been used during crises of this nature. We previously faced the Russia-Ukraine conflict, which required the country to draw on these resources due to the sharp rise in fuel prices. At present, available funds stand at around €5.2 million,” she said.

The government also acknowledged the possibility of a budget revision “in an extreme scenario” if the conflict intensifies and leads to a generalized rise in oil prices.

“In the most adverse scenario, a budget revision may indeed be necessary. The impact of the war is felt through imported inflation and rising fuel prices, which can drive up the cost of essential goods. The conflict may also increase public spending — not necessarily in volume, but in value,” she explained.

On February 28, the United States and Israel launched a military attack against Iran, during which Supreme Leader Ayatollah Ali Khamenei, who had led the country since 1989, was killed. In response, Iran closed the Strait of Hormuz and carried out retaliatory strikes against targets in Israel, U.S. bases, and other infrastructure across the region.

The Strait of Hormuz, which connects the Persian Gulf to the Gulf of Oman, handles around 20% of global oil shipments and a significant share of liquefied natural gas traded by sea, according to data from the U.S. Energy Information Administration and the United Nations.

Source: Diário Económico

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