The Confederation of Economic Associations (CTA) expressed concern on Tuesday (March 17) about the impact of the conflict in the Middle East, particularly regarding fuel availability in Mozambique, whose stock is currently guaranteed until early May.
“We are concerned as a business class. The entire country is also concerned, because wars are unpredictable and we do not know when the situation will be normalized,” said Álvaro Massingue, president of the CTA, cited by Lusa.
Speaking on the sidelines of a meeting with the Ombudsman, Isaque Chande, the head of Mozambique’s business community warned that after the stock guaranteed by the government is exhausted, “it is evident that it will not be easy to control prices” in the following period.
“What other countries are doing is subsidizing fuel prices, but only up to a certain point. What we are requesting is that there be an agreement, as soon as possible, between the belligerents to open the channel and allow fuel to circulate worldwide,” Massingue added.
Last week, the government assured that fuel prices in the domestic market should remain unchanged at least until the end of April, despite growing instability in the Middle East, one of the most strategic regions for global oil supply. The information was provided in Maputo by the Secretary of State for Treasury and Budget, Amílcar Tivane, at the end of the 7th ordinary session of the Council of Ministers.
According to Tivane, the country currently has around 75,000 tons of fuel available on the market, supplemented by approximately 85,000 tons stored in ocean terminals, volumes considered sufficient to ensure the functioning of the national economy until early May.
“The existing reserves allow us to guarantee the functioning of the economy until early May. Meanwhile, measures are being developed to ensure that, in the event of a total disruption of petroleum product flows through the Strait of Hormuz, alternative routes can be activated for fuel delivery,” he stated.
Tivane explained that the fuels currently sold in the country were imported before the recent escalation of the Middle East conflict, which is why prices remain stable in the domestic market.
Recently, analysts cited by Diário Económico highlighted that the country, as a net fuel importer, “is unfortunately exposed” to this new cycle of instability, which could also affect currency stability and the national economy.
On February 28, the United States and Israel launched a military attack against Iran, killing Ayatollah Ali Khamenei, the country’s supreme leader since 1989, during the offensive. In response, Iran closed the Strait of Hormuz and carried out retaliatory attacks against targets in Israel, U.S. bases, and other infrastructure in regional countries.
The Strait of Hormuz, which connects the Persian Gulf to the Gulf of Oman, carries about 20% of global oil and a significant portion of liquefied natural gas shipped by sea, according to data from the U.S. Energy Information Administration and the United Nations.
Source: Diário Económico
