LUSA 05/12/2026

Lusa - Business News - Mozambique: Fuel crisis sparks interest in gas-powered vehicles

Maputo, May 11, 2026 (Lusa) – The fuel crisis in Mozambique is driving demand for vehicular natural gas and vehicle conversion requests, as the alternative cuts operating costs by 50%, though response capacity remains limited.

João das Neves, CEO of Autogás, confirmed the growth, noting a sharp rise in demand, currently concentrated on information requests, technical pre-inspections, and conversion quotes. Fuel shortages at filling stations and price hikes since 7 May, reaching 45% for a litre of diesel, are drawing attention to gas.

"We are seeing growing demand for vehicle conversions, but this is essentially limited to requests for quotes and more details on the process. Above all, public interest among Mozambicans regarding the possibility of using natural gas has increased significantly," he told Lusa.

At the conversion company's offices in central Maputo, information leaflets and frequent enquiries indicate a rising interest from owners, drivers, and transport operators. They are seeking alternatives to conventional fuel amid petrol and diesel shortages caused by the conflict in the Middle East.

At the gas refilling station in the Malhangalene district, the scene contrasts with traditional stations, which for weeks have fluctuated between closure and queues hundreds of metres long. The movement there remains steady, with no prolonged waits, as two pumps provide fast service. Gas is cheaper than traditional fuels, which the government has warned will see further price increases in the coming weeks.

"Everything indicates that in the coming weeks and months, more people will convert their vehicles to natural gas," he said, adding that the system has an installed capacity to supply around 10,000 vehicles, although currently just over 4,000 actually use natural gas in the country, primarily in Maputo.

Transport vehicles, such as the traditional 'chapas' (informal minibus) or minibuses, drive demand for conversion, as it reduces operational costs.

Until 6 May, natural gas cost 41.11 meticais (€0.55) per equivalent litre, rising since then to 52.73 meticais (€0.69). "In other words, the unit is the amount needed to replace one litre of petrol or diesel. It corresponds to approximately half the average price of petrol and diesel," he said.

Despite the rise, the price remains far below the 45% increase in diesel and 12% in petrol, which now cost 93.69 meticais (€1.23) and 116.25 meticais (€1.54), respectively.

Meanwhile, around 80 buses have been converted to run on gas, with another 190 in preparation to begin operations in Maputo.

"One cannot expect to convert thousands of vehicles and solve the national [diesel and petrol] distribution problem in just a few days or weeks, given the significant investments and planning required," he acknowledged.

The cost of conversion, which takes two to three days to complete, is another relevant factor. Prices range from 50,000 to 130,000 meticais (€670 to €1,700), depending on the vehicle and the gas cylinders installed.

Autogás was created as a public-private partnership linked to the Matola Gas Company. It began converting vehicles at the start of the last decade in a process that was initially slow but gained momentum with the network's expansion across the Maputo metropolitan area and the progressive adoption by public transport.

Public transport operators are leading the transition to natural gas, driven primarily by savings and operational continuity. Feliciano Moiane, who operates a 'chapa' on the Boquisso-Baixa route in Maputo, stated that he has significantly reduced costs since adopting gas.

"When I used a diesel car, I spent 3,500 meticais (€46.8) for the same number of trips and on the same daily route. Now, I spend about 2,000 meticais (€26.7) on gas," Moiane said. He noted that he no longer faces queues and can maintain his daily activities while saving 1,500 meticais (€20). He described natural gas, of which Mozambique is one of Africa's largest producers, as "super-economical."

Vasco Magaia, 56, switched to vehicular gas three years ago and now confirms these gains. He highlighted the autonomy and efficiency in his daily work, free from the concerns of those who spend hours queuing for diesel or petrol.

"I spend 410 to 420 meticais [€5.40 to €5.60], depending on the day's consumption (...). I work from 5:00 a.m. until 8:00 p.m. If I were using petrol, the amount I spent on gas would not be enough," Magaia said, adding that on longer journeys, such as to Xai-Xai in Gaza province, a trip of over 250 kilometres, he can complete the route with reduced costs before returning to Maputo to refuel.

The head of Autogás said that vehicular natural gas can play a strategic role in mitigating energy crises, but this depends on structural decisions and greater state involvement.

"If we had taken these decisions in 2010 or 2012, for example, the conflict in Iran and other issues would probably not concern Mozambicans today," he said, calling for coordinated investment between the public and private sectors.

The company currently operates eight filling stations, all in the southern zone, and plans a gradual expansion. This strategy includes new points in the Gaza and Inhambane provinces, with a long-term goal of reaching up to 70 stations.

João das Neves said that partnerships have supported the sector's growth. These include Mozambican companies focused on vehicle conversion and an international strategic partner for network expansion.

Mozambique holds vast natural gas reserves in the Rovuma basin in the north. This resource could strengthen domestic gas use as an alternative energy source for transport.

EYMZ/RYOL // ADB.

Lusa