The Minister of Mineral Resources and Energy, Max Tonela, said Monday that the increase in fuel prices in the country prevented a collapse in supply because importers and distributors in the sector were operating at a loss.

"Taking into account the evolution of the international price" and also the exchange rate, one had "to allow the importing and distributing companies to revise prices, to ensure continuity of supply, guarantee security and replenish 'stocks'," Tonela said.

The minister was speaking on the sidelines of the sixth coordinating council of the Ministry of Mineral Resources and Energy, which is taking place in the city of Pemba, capital of Cabo Delgado province.

"The level of loss was so high that some of the companies were going into debt with banks, to make imports, without the ability to make the replacement," he said.

The Minister of Mineral Resources and Energy pointed out that the Government maintains the subsidy on the price of cooking gas, paying 12 meticais per kilo.

Last week, Mozambique's Energy Regulatory Authority (ARENE) announced a price hike for petroleum products in the country of between 7% to 22%, reflecting the rising price of a barrel of crude oil.

Lusa Agency