The Mozambican Ministry of Mineral Resources and Energy has announced a cut in the prices of diesel, kerosene and LPG cooking gas, taking effect as from midnight on Friday.

The price of a litre of diesel falls from 60.16 to 58.96 meticais (from 87 to 85 US cents), a reduction of two per cent. Kerosene falls in price by 6.6 per cent, from 48.44 to 45.24 meticais a litre. LPG now costs 58.18 rather than 61.23 meticais a kilo, which is a fall of five per cent.

The price of petrol is unchanged at 64.22 meticais a litre.

A press release from the Ministry said the cut in fuel prices “is the result of the international dynamic, associated with the Covid-19 pandemic”.

Crude oil prices had fallen sharply in March and April – but the Ministry warned that this will not continue. Fuel prices are now rising again on the world market, because of the easing of the Covid-19 lockdowns in various European, American and Asian countries, and because of cuts in supply by members of the Organisation of Petroleum Exporting Countries (OPEC).

The June fuel prices in Mozambique are based on fuel unloaded in May, and the prices per barrel for that fuel are those of February and March. The average price of a barrel in February was 55.48 dollars, and in March, it was 33.75 dollars.

The depreciation of the metical against the dollar had a negative impact. The exchange rate associated with the new prices was 69 meticais to the dollar – but a month earlier it had been 67.75 meticais to the dollar. The metical has continued to slip, and the current rate quoted is 70.16 meticais to the dollar.

The last price alteration was on 14 May, when the prices of both petrol and diesel were cut.

 

Source: All Africa

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