ARENE resorts to dubious elements to fix fuel prices - CIP

ARENE recorre a elementos duvidosos para fixar preços de combustíveis – CIP

A brief analysis of the Center for Public Integrity (CIP) on fuel prices in the country shows doubts about the "elements" that the Energy Regulatory Authority (ARENE) considers in setting them.

For example, CIP questions the fact that diesel arrives in the national territory at 54.01 meticais per liter and is sold to the final consumer for 87.97 meticais, that is, 33.96 meticais more per liter, equivalent to 63% of the arrival price.

For CIP, all Mozambicans need to understand how this percentage that makes prices escalate is reached.

 

"It is not possible for a layman to understand, for example, how some values such as direct import costs; the stabilization component; operators' margins; and customs duties were determined," reads the document.

Thus, the CIP accuses ARENE of resorting to "other" elements than those established in the number 2 of article 69 of Decree no 89/2019 of November 18 to fix, in its tables, the fuel prices that should be in force in the country.

The fuel price structure establishes four elements, namely Distributor Selling Price; Transport Differential; Retailer Margin; and Current Tax Impositions, according to the NGO.

"The fact and these "other" elements are not in the public domain does not allow us to verify how some of the mitigation measures impact the final retail price," reads the organization's analysis.

Furthermore, the IPC says that ARENE resorts to the strategy of never detailing these "other" elements "that represent the big doubts for society.

The organization also says that in the price tables presented by ARENE it is not clear how the measures adopted for the reduction of fuel costs, which are in force for six months, impact on the citizen's pocket.

"It is unclear, for example, how the reduction in 60% logistics infrastructure costs exerts any cushioning effect on the price and how the others impact it," the Center says, repeating that "the way the information is made available does not allow for public scrutiny, therefore leaving gray areas."

CIP suggests presenting all the details of the elements to "verify the rationality" in fixing fuel prices the country.

Our attempts to request ARENE's comment have not been answered.

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