Fuel prices in the Mozambican market may suffer a downward revision due to the decrease in the price of a barrel of crude oil at an international level and the appreciation of the US dollar, the Energy Regulatory Authority (Arene) said today.

The other factors such as estimates of increased oil production by the Organization of the Petroleum Exporting Countries (OPEC) and rising interest rates make up the baseline set for the decline in current fuel prices.

"Lately, OPEC is increasing the daily production of the barrel of oil. We are in a situation where we have the increase in production and supply, and accordingly the price has been going down," explained the economist of the Economic Regulation and Market Area at ARENE, Gildo Chigoi, without giving figures.

The economist also clarified that with the general increase in interest rates consumption decreases, "because borrowing becomes more expensive". And, in ARENE's view, businessmen become more afraid of making new investments and consumption.

This week MZNews advanced an analysis by the Center for Public Integrity (CIP) according to which it is possible to reduce the current fuel prices in Mozambique with the elimination of the 5% Customs Duty and the now 16% Value Added Tax (VAT), for importers. Find out more...

This year ARENE has made three upward readjustments in fuel prices with cooking gas going up almost 20%.

Gasoline rose to 86.97 meticais and diesel to 87.97 meticais, per liter. Cooking gas registered the biggest increase, going from 85.53 meticais to 102.2 meticais, per kilo, up 19.5%.

Vehicle gas rose to 43.73 meticais and lamp oil rose to 75.58 meticais, per liter.