The Mozambican government is preparing fiscal incentives to facilitate the importation of equipment for converting vehicles to compressed natural gas (CNG) and expanding the fuelling network, as part of a strategy to reduce the country's dependence on imported petroleum products.
The initiative was disclosed by Felisbela Cunhete, National Director of Hydrocarbons and Fuels at the Ministry of Mineral Resources and Energy, on the sidelines of the ministry's 11th Coordinating Council. "We have a plan already structured to massify the use of natural gas in our country, since it is a resource we have," Cunhete said, adding that the initiative could help reduce the national fuel import bill.
Among the measures under consideration is a reduction in the tax burden applied to the importation of equipment used to convert vehicles to CNG, as well as materials required for the installation of fuelling units.
The plan also includes mechanisms aimed at reducing the costs borne by vehicle owners in the conversion process, including facilitated importation of compressors and other equipment needed to expand the use of natural gas in the transport sector. "We are talking about the possibility of reducing the tax burden — tax incentives, therefore, on the importation of these conversion kits," Cunhete explained, noting that the proposal is expected to be debated at the ministry's Coordinating Council.
The push for CNG is gaining greater relevance amid mounting pressure on Mozambique's domestic fuel market. In May, the price of diesel rose 45.5%, while petrol increased 12.1%, a situation the government attributed to movements in international commodity markets.
Following the adjustment, a litre of petrol rose from 83.57 to 93.69 meticais, while diesel climbed from 79.88 to 116.25 meticais per litre. CNG prices also increased, moving from 41.11 to 52.73 meticais per litre. Between April and May, the country also experienced fuel supply disruptions, with long queues reported at filling stations across several regions.
Earlier this month, the government approved an emergency mechanism allowing state oil company Petromoc to mobilise up to US$50 million to secure fuel imports and guarantee national supply during crisis situations. In May, President Daniel Chapo announced the launch, before the end of this year, of a National CNG Massification Programme, unveiled during the handover of more than 190 gas-powered buses.
Source: Diário Económico
Original article: https://www.diarioeconomico.co.mz/2026/08/16/oilgas/executivo-prepara-beneficios-fiscais-para-expandir-uso-de-gas-natural-veicular/
