Business Politics

Mozambique’s fuel crisis: A nation at a standstill

MAPUTO-(MaraviPost)-Mozambique is grappling with a severe fuel shortage, particularly in Maputo and Matola, with long queues, closed stations, and rationing reported.

The government initially denied a crisis but later attributed the situation to liquidity issues, foreign exchange shortages, and logistical delays rather than a lack of fuel at terminals.

The fuel shortage has persisted for over five days, with some stations closing or operating under police supervision.

Drivers are struggling to fill up, with some limited to 1,000 meticais (approximately 12 liters) per vehicle.

The situation is dire, with transport services suspending operations and prices expected to rise.

The root causes of the crisis are multifaceted. Fuel distributors are struggling to secure bank guarantees in US dollars to release fuel from port terminals, citing liquidity problems.

International logistical bottlenecks have increased fuel import costs and created delays, with transport times increasing from 15 to 25 days.

Panic buying and hoarding have exacerbated the situation.

The government has initiated inspections on stocks and sales, urging calm and claiming fuel is available at ports.

However, the shortage has affected transport, with some cross-border services suspending operations.

While southern areas face severe shortages, some provincial authorities, such as Zambezia, have reported stable, though tight, supplies.

The situation is characterized as a “liquidity crisis” for importers rather than a total lack of inventory, though the result at the pump is similar to a supply failure.

The government has announced emergency measures to secure liquid fuels, triggering immediate price hikes in Maputo.

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