Falling Global Oil Price: Mozambique Cuts Energy Costs

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…also blames unstable exchange rate

The government of has cut the of liquid fuels by between 0.9 and 3.2%, with the new prices taking effect as from Thursday (yesterday).

A statement from the Ministry of Mineral Resources and Energy said the cuts were possible because of the falling price of oil on the world market, and the stability of the exchange rate of the metical.

According to the statement, the biggest reduction is for cooking gas, which falls from 63.26 to 61.23 meticais (from 1.05 to 1.02 US dollars) a kilo, a decline of 3.2%.

The of a litre of petrol falls by 0.9%, from 67.07 to 66.49 meticais, while the price of diesel falls by 1.6%, from 64.55 to 63.51 meticais a litre.

A litre of kerosene will now cost 48.43 rather than 49.08 meticais, a reduction of 1.3%

The general director of the Petroleum Import Agency, Joao Macanja, told newsmen that the fall in world has to do with several factors. “One of the most significant is the perception of a slowdown in international economic activity, resulting from the tensions between and the United States,” he said.

Government policy is to review the prices of liquid fuels every month, and to change them whenever the import price, expressed in meticais, moves by more than three per cent in either direction. The last time fuel prices were adjusted in was on 18 April.

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