Russia-Ukraine crisis affect supply of fuels

Fuel merchants in Mozambique are already feeling the effect of the military crisis in Ukraine and Russia. The Mozambican Association of Fuel Companies (Amepetrol) said on Saturday (26-02) that there may be difficulties in replenishing fuel stocks in the near future. The price of a barrel of oil continues to rise, having now reached US$105. The rise has been precipitated by the Russian invasion of Ukraine. Ricardo Cumbe, secretary general of the Mozambican Association of Fuel Companies, says the situation is already worrying fuel suppliers in Mozambique.

“The conflict between Russia and Ukraine is already being felt in the country. We are talking principally about fuels, but there are other commodities that Mozambique depends on for imports,” Cumbe says.

The association fears that the situation will interfere with the replenishment of fuel stock in the national market and complicate the fulfilment of contract between fuel suppliers and the government.

“A good part of the operators did not manage to import in the light of the contract, which provided for bringing 215,000 tons of fuel to the country. This order may not come in the magnitude that is desired, given the inability of operators to issue collateral to sustain the merchandise,” he explained.The Mozambican Association of Fuel Companies foresees an increase in the price of fuel and, consequently, of other products, but offers some solutions.

 “The rise in prices is not a projection, but a reality, since prices in the market are already increasing significantly. What is not happening yet is the situation making itself felt in the consumer’s pocket, as the fuel companies are bearing the costs,” Cumbe said.

“One of the measures that we learned during the pandemic is the deferment of tax payments, which we, as a sector, feel that we are already having some difficulties in making, as our cash-flow, that is, revenues, are already in the red,” he explains. Amepetrol says it will continue to supply fuel into the country as long as possible, despite the concerns.