SEATTLE (Oil Monster): Mozambique’s Government plans to introduce tax incentives for the import of goods and equipment needed to expand the use of compressed natural gas (CNG) in vehicles, seeking to reduce dependence on imported fuels, an official source said on Sunday.
The information was provided by Felisbela Cunhete, national director of Hydrocarbons and Fuels at the Ministry of Mineral Resources and Energy (MIREME), on the sidelines of the ministry’s 11th Coordinating Council.
“We already have a structured plan to expand the use of natural gas in our country, since it is a resource that we have,” Felisbela Cunhete told journalists, adding that the measure could help reduce the fuel import bill.
Measures under consideration include reducing the tax burden on imports of equipment for converting vehicles to CNG, as well as equipment for installing refuelling stations.
The plan also includes measures to reduce vehicle conversion costs, including the import of compressors and other equipment needed to expand the CNG refuelling network, according to the official.
“We are talking about the possibility of reducing the tax burden, tax incentives, therefore, on the import of this conversion equipment,” Cunhete said, indicating that the programme would be discussed at the Coordinating Council.
The push for CNG comes in a year marked by strong pressure on the fuel market, after the price of diesel rose by 45.5% on 7 May and petrol by 12.1% per litre, with the Government attributing the fuel price increases to international prices.
The price of a litre of petrol rose to 93.69 meticais (€1.23), from 83.57 meticais (€1.10), while diesel rose from 79.88 meticais (€1.06) to 116.25 meticais (€1.54). Cooking gas rose from 86.05 meticais (€1.14) to 87.82 meticais (€1.15) per kilogramme, while CNG rose from 41.11 meticais (€0.54) to 52.73 meticais (€0.69) per litre.
Between April and May, shortages of petrol and diesel caused queues of dozens of vehicles and led to an increased presence of the police Rapid Intervention Unit (UIR) at filling stations with fuel, to ensure security and control the flow of motorists, motorcyclists and consumers carrying containers.
This month, the Government approved an emergency mechanism to mobilise up to US$50 million (€43.1 million) through state-owned oil company PETROMOC to ensure fuel imports and national supply in the event of crises.
On 11 May, Mozambican President Daniel Chapo announced that Mozambique would launch a National Vehicle Gas Expansion Programme this year, as he handed over more than 190 new gas-powered buses, saying that this Mozambican resource was already changing people’s lives.
Courtesy: www.clubofmozambique.com
