The Ministry of Mineral Resources and Energy, Mozambique has announced a reduction in the prices of diesel, kerosene and LPG cooking gas. The new prices took effect from Friday, 19th June, 2020.

In a press release by the Ministry, it said that the cut in fuel prices “is the result of the international dynamic associated with the COVID-19 pandemic.” The Ministry noted that the fall in prices in the previous month influenced the decision, though it might not last for too long.

The Ministry also noted that there might be a change, since fuel prices are gradually rising due to the lifting of lockdowns in various countries all over the world, the gradual re-opening of the global economy, and the efforts being made by members and alliances of the Organisation of Petroleum Exporting Countries (OPEC) to cut global oil production to help the global oil market recover.

The new fuel prices in the country were calculated based on imported fuel in May and the prices per barrel were of those imported in February and March. The average price of a barrel in February was reported to be $55.48, while that of March was $33.75.

The last change in the prices of fuel was made on May 14^th.

The new prices are:

A litre of diesel is now 58.96 meticais from 60.16 (a 2 per cent reduction).

A litre of kerosene is now 45.24 meticais from 48.44 (a 6.6 per cent reduction).

A kilo of Liquefied Petroleum Gas (LPG) is now 58.18 meticais from 61.23 (a 5 per cent reduction).

The price of petrol is unchanged and remains 64.22 meticais a litre.

The falling value of the meticais against the dollar is also seen as a reason for the fall. The rate associated with the new prices was 69 meticais to a dollar. It was 67.75 last month and it is currently said to be around 70.16 meticais to a dollar.