The Confederation of Economic Associations (CTA) said it expects “very difficult days,” particularly regarding purchasing power, following the increase in fuel prices, while calling for joint action with the Government to reduce what it considers an inevitable impact.
“This means that all these costs will ultimately be passed on to final consumers. We can expect more difficult days ahead,” CTA vice-president Onório Manuel told Lusa, acknowledging that the problem was already known, although not necessarily from the perspective of rising fuel prices that affect every sector of the economy.
The official stated that “this is a situation we must accept and not politicise. It has absolutely nothing to do with whether the Government’s management is good or bad; it is linked to the international context,” adding that the reduction in consumers’ purchasing power would be a “direct impact” of the crisis.
Among other consequences of the fuel price adjustments, particularly for end consumers, the CTA pointed to the rising cost of living for families, warning that it could further deepen inequality.
Onório Manuel acknowledged that Mozambique is expected to face “harmful impacts” with consequences throughout the entire supply chain, from production to product distribution, across several sectors including tourism, commerce, services, agriculture and transport.
As alternatives to mitigate the impact, he defended strengthening public transportation through the introduction of electric vehicles and gas-powered vehicles, a measure he described as essential to easing the burden and helping the population cope with the crisis.
The CTA vice-president also stated that Mozambican companies were not prepared for the new fuel prices and called for Government intervention to soften the effects.
Meeting in the Council of Ministers, the Government announced adjustments to fuel prices, which came into effect today, Thursday, May 7, across the country, justifying the revision as being aligned with international market prices.
“The price of gasoline rises to 93.69 meticais per litre, from the previous 83.57 meticais, while diesel increases from 79.88 meticais to 116.25 meticais. Kerosene rises from 66.86 meticais to 97.56 meticais per litre, cooking gas will increase from 86.05 meticais to 87.82 meticais per kilogram, and compressed natural gas for vehicles will go from 41.11 meticais to 52.73 meticais per litre,” detailed Paulo da Graça, Chairman of the Energy Regulatory Authority (Arene).
Source: Diário Económico
