Petroleum products in Mozambique are, from this Thursday (21-10), 7% to 22% more expensive, reflecting the rise in the price of a barrel of crude, the Energy Regulatory Authority (ARENE) announced on Wednesday.

Cooking gas (LPG) rose 22%, from 58.18 to 71.02 meticais per kilogram.

Diesel, now 7% more expensive, saw the lowest rise – from 57.45 to 61.71 meticais per litre; while gasoline went up 10% from 62.50 to 69.94 meticais per litre.

Paraffin rose by almost 11%, from 43.24 to 47.95 meticais per litre, while compressed natural gas for vehicles (CNG) is up almost 9%, from 30.00 to 32.69 meticais per litre-equivalent.

As usual, ARENE notes that the new prices need not necessarily apply across the whole country, and might be higher at gas stations outside the areas within the  established range of  distribution terminals in Matola, Beira, Nacala and Pemba, since the law makes provision for transport costs.

ARENE justifies the price increases with the rise in the price of a barrel of crude on the international market. This situation, according to ARENE, derives from the maintenance of volumes produced by the member countries of the Organization of Petroleum Exporting Countries (OPEC) and the lifting of restrictions imposed by the Covid-19 pandemic, which, in many countries, has led to an increase in demand for petroleum products.

The last adjustment of the price of liquid fuels was in November last year, when prices fell.

Petroleum products for sale in Mozambique are imported by sea in special cargo ships, through a process centralised by law in a single public entity, IMOPETRO, which is in turn owned by the petroleum product distributors operating in the country.

It is then up to ARENE to determine the sale price to the public to be practiced throughout Mozambican territory, in accordance with calculations established by law.

On Wednesday, Brent oil futures increased by 0.89% to US$85.84 per barrel and WTI crude was up 1.29% to US$83.50.