Mozambique: Government raises gasoline prices and suspends tax on fuel

23 June 2008

Maputo, Mozambique, 23 June – The Mozambican government Friday announced a 17 percent increase in the price of gasoline, which came into effect Saturday, but left the price of diesel unchanged, according to a report from Mozambican news agency AIM.

Although the government had announced a review of fuel prices every month and said it would change them if import prices varied by over 3 percent either way, the current price rise is the first since 23 January.

Thus, the price of gasoline was raised from 35.9 to 41.62 meticais (US$1.73 per litre) and each litre of diesel continues to cost 35.35 meticais.

Meanwhile, the state media said Saturday that the government had decided to temporarily suspend import and Value-Added taxes on all oil-based products.

Mozambican newspaper Notícias, cited energy minister, Salvador Namburete as saying that the government had made that decision after noting that companies had given up setting up reserves due to the high price of fuel.

Due to the tax suspension the Mozambican state is expected to lose up to US$6 million in revenue between July and December of this year. (macauhub)