Maputo, June 18, 2026 (Lusa) - Mozambique’s minister for the economy said on Thursday that it might be possible to reduce fuel prices following the recent ceasefire agreement between Iran and the United States, acknowledging that he is monitoring developments in the Middle East.
“Obviously there are challenges; we are monitoring fluctuations in international fuel prices, so our country is managing the situation as best it can, but it is an issue over which we have no decision-making power,” said Basílio Muhate in Maputo, on the sidelines of the opening of the 20th edition of the Economic Briefing on “business performance in the first quarter of 2026 and outlook”.
The minister described the conflict as an external factor affecting the national economy, acknowledging that if the country were a fuel producer, it would not be dependent on other sources: “But we do depend on others, so we are analysing the situation.”
“It is quite possible [to reduce the price], but we will monitor developments; we are aware of the state of relations and tensions in the Middle East, but we will keep an eye on things to see what happens over the next few days. However, we are pleased because there are positive signs,” he stated.
Mozambique is seeing some easing of the situation and a return to normality in the country’s fuel supply, following weeks marked by shortages of petrol and diesel, queues of dozens of cars, and the police Rapid Intervention Unit stationed at petrol stations that were able to supply petrol or diesel, to ensure safety amongst the hundreds of people gathering there, including motorcyclists and consumers carrying jerry cans.
On 7 May, the price of diesel in Mozambique rose by 45.5% and petrol by 12.1% per litre, with the government justifying the price increase by citing international market prices.
Mozambique’s minister for mineral resources and energy said last Friday that biofuels could help to cushion the volatility of international fossil fuel prices, reiterating that this environmentally friendly fuel should be seen as part of the diversification of the national energy mix.
Estêvão Pale, speaking in Maputo, at the opening of the National Biofuels Seminar, acknowledged that the current context was marked by volatility in fossil fuel prices on the international market, at a time when the country was facing an energy crisis linked to the conflict in the Middle East, highlighting the pressure on global supply chains, exchange rate fluctuations and the country’s growing need to strengthen its energy security.
According to the minister, despite the instability of this market, Mozambique possesses natural, agricultural, and logistical conditions that place it in a favourable position to develop a national biofuels supply chain, whilst acknowledging that biofuels will not immediately replace fossil fuels.
Felisbela Cunhete, director of the National Directorate for Hydrocarbons and Fuels (DNHC), recalled on that occasion that the country began to look into biofuels in 2008, following the first fuel crisis caused by the international market shock.
At that time, she explained, work began on drafting the regulatory framework necessary for the sector’s development.
VIYS/ADB // ADB.
Lusa
