"When a company can't make enough money in a business, when it's losing, the solution is to reduce activity," he said.

Unable to adjust prices, which are set by the government, Mitri said that in the first quarter, oil product distributors reduced fuel imports by 54% compared to the same period in 2022.

"In two to three months there will be no fuel in Mozambique," he said.

According to the president of Puma in Africa, the monthly increase in Mozambique's debt is jeopardizing the reputation of petrol stations with banks, which are beginning to reject proposals for new loans, especially among the less robust Mozambican distributors.

"When the debt gets long, the banks start to reject this request. Mozambican gas stations suffer the most, as the international ones are more financially robust," he explained.

For him, the solution to curbing a fuel crisis in Mozambique "is simple: prices must go up".

"Diesel prices should rise by 4.55 meticais per liter. There's no need for petrol. This doesn't mean that there will be an immediate repayment of the 25 billion meticais that the government owes, but with this measure, the debt will start to fall."

"If the debt starts to fall, the market will realize that the government is reacting," after talks that have been going on for "18 months" and "we could start looking to the future and the banks would be happy," he explained.

Since July 1, 2022, the date of the last adjustment, petrol has cost 86.97 meticais and diesel 87.97 meticais per liter.

Fadi Mitri defended less government interference in setting the price of fuel, which derives from the dynamics of the international market.

For Puma Energy, Mozambique's geographical location on the Indian Ocean makes it a strategic partner, as the fuel that reaches inland countries must pass through Mozambican ports, but the debt situation may force Puma Energy Africa to rethink its strategies.

"We think that Mozambique should be a `hub' (distribution point) for Zimbabwe, Malawi and Zambia, but unfortunately today it is not an efficient `hub'," he concluded.

The last price adjustment at gas stations in Mozambique took place in July 2022.

Complaints from petrol stations in Mozambique, which is among the countries with the lowest fuel prices on the continent, began in mid-2022, when the Mozambican Association of Oil Companies first warned that state debts could paralyze distribution - at a time of price volatility on the international market with the Russian invasion of Ukraine and global inflation.

Lusa contacted the Mozambican Ministry of Mineral Resources and Energy, which asked for statements in due course. (RTP)