Maputo, Nov. 3, 2025 (Lusa) - Mozambique's government wants to boost national production of oils for pure biofuels and has decided to cut the export tax on these products in half.
A series of ministerial decrees from the ministries of Mineral Resources and Energy and Finance, dated 27 October, refers to the "need to boost the production of vegetable and animal oil, as well as molasses to obtain pure biofuels", by "making the respective projects viable and ensuring their export sustainably, including making it more flexible to introduce mandatory blending of imported biofuels".
The changes to the Biofuels Regulation provide for a reduction in the export tax on vegetable and animal oils, as well as molasses, from eight to 0.20 meticais (€0.10 to €0.002) per litre. In comparison, the export tax on pure biofuels is halved to 0.20 meticais per litre.
It also stipulates that any company producing vegetable or animal oil, as well as molasses for the production of pure biofuels, must now “allocate part of that production to the domestic market”, in this case 1% of what it produces in the first five years, 2% from the sixth year onwards and 3% after the tenth year.
This allocation, according to the law, "must take into account the terms and conditions of sale and prices to be established in contracts with the companies taking over" the product, "taking into account the commercial conditions of the market".
The text adds that the producing company "must report every month" to the Ministry of Mineral Resources and Energy "the quantities allocated to the domestic market", including the designation of the companies that buy the vegetable or animal oil and molasses, "for processing with a view to obtaining pure biofuels".
"In the absence of companies purchasing vegetable or animal oil, as well as molasses, these products must be allocated to the national fuel distribution company, by signing a contract for this purpose, taking into account the commercial conditions of the market," the decree from the two ministries also states.
Finally, the government said that the companies involved must have an export licence for the production of vegetable and animal oils, molasses, and/or pure biofuel.
PVJ/ADB // ADB.
Lusa
