By MOZTIMES
Maputo (MOZTIMES) - Mozambique is bracing for potential fuel price rises linked to Middle East tensions, as the ruling Frelimo party reassesses the country’s economic performance and policy direction for 2026.
Frelimo spokesperson Pedro Guiliche issues this warning on Friday, the second day of a meeting of the party’s Central Committee, where senior members are reviewing the 2025 economic and social plan and debating the state budget and priorities for the current year.
Guiliche pointed to instability around the Strait of Hormuz — a critical artery for global oil shipments — amid tensions involving Israel and Iran, warning that Mozambique remains exposed due to its heavy reliance on imported fuel.
“Any escalation will inevitably push prices upward,” he said, noting that the impact would extend beyond fuel to transport and basic goods.
While the country has temporarily cushioned price shocks through existing reserves, officials acknowledge that incoming fuel shipments are likely to reflect higher international costs, pushing inflation and household costs upwards.
The review comes against a backdrop of a difficult economic year, shaped by post-election unrest, extreme weather events and continued insecurity in the northern province of Cabo Delgado, he said.
Guiliche said the government has sought to stabilize the situation through political dialogue led by President Daniel Francisco Chapo, which he credited with helping restore a degree of social order and international confidence.
However, structural challenges persist. The health sector, already under strain, was further impacted by the destruction of key infrastructure during the unrest, affecting the state’s ability to deliver essential services. Authorities say new medical supplies are expected in the coming weeks.
To limit the fallout from rising fuel costs, the government is prioritizing agriculture and transport, aiming to boost domestic food production and contain price increases, according to Guiliche. (MT)
