Mozambique has established a US$50 million payment facility designed to help maintain the flow of imported liquid fuels during periods of disruption, as the country seeks to address vulnerabilities in its fuel supply chain and foreign currency market.
The mechanism was approved by the Council of Ministers on 7 July 2026 through a resolution establishing a payment facility for foreign creditors through state owned fuel company Petromoc. Under the arrangement, Petromoc will have access to an account held by the Ministry of Finance at the Bank of Mozambique, allowing payments to foreign fuel suppliers to be made on behalf of qualifying importers.
The facility is intended to address a practical constraint that has contributed to recent supply difficulties: the ability of fuel importers and distributors to secure sufficient foreign currency and the dollar denominated bank guarantees required by international suppliers. Mozambican authorities have said that some distributors have struggled to obtain those guarantees from commercial banks, contributing to delays in moving fuel from ports to filling stations.
The intervention follows months of disruption in parts of Mozambique’s fuel distribution network. During April and May, motorists in Maputo and other urban areas faced lengthy queues and intermittent availability of petrol and diesel. Reports from the period indicated that fuel was reaching Mozambican ports while difficulties in financing, distribution and the movement of product through the domestic supply chain continued to affect availability at retail stations.
The government’s response has therefore focused not only on the physical availability of petroleum products, but also on the financial infrastructure required to import and distribute them. In May, the Ministry of Mineral Resources and Energy said Petromoc had been given a stronger role in maintaining national fuel availability, including supplying fuel to retail operators beyond its existing contractual relationships. The ministry reported that Petromoc had reached approximately 42 per cent of the market during that intervention.
The supply pressures have coincided with a difficult international energy environment. Mozambique is a net importer of refined petroleum products and remains exposed to changes in international fuel prices, shipping conditions and foreign exchange availability. The disruption to international energy markets associated with the conflict in the Middle East added to those pressures during the first half of 2026. Reuters reported in April that fuel shortages were already affecting motorists in Maputo, while Mozambican authorities linked the disruption partly to developments in international energy markets.
Mozambique’s experience also illustrates a wider challenge for African economies that depend on imported refined fuels despite possessing substantial domestic energy resources. The availability of natural gas and other extractive resources does not automatically translate into security of supply for transport fuels, particularly where refining capacity, foreign exchange liquidity, storage infrastructure and regional distribution networks remain constrained. The immediate problem is therefore as much financial and logistical as it is one of physical energy availability.
For Mozambique, the US$50 million facility provides a short term financial buffer rather than resolving those structural vulnerabilities. Its effectiveness will depend on how the mechanism is capitalised, administered and accessed, as well as on the availability of foreign exchange and the willingness of international suppliers to maintain normal trading arrangements.
The measure also comes after the government adjusted domestic fuel prices in May. Diesel increased by 45.5 per cent to 116.25 meticais per litre, while petrol rose by 12.1 per cent to 93.69 meticais per litre. The adjustments reflected pressure from international energy markets and were made against a backdrop of significant disruption to global oil and fuel trade.
The immediate policy challenge is to ensure that the financial facility translates into reliable supplies for households, transport operators, farmers and businesses without creating additional distortions in the fuel market. For an economy in which road transport is central to the movement of people and goods across long distances, interruptions in fuel availability can quickly affect food distribution, agricultural activity, trade and the cost of everyday economic activity.
The longer term question is whether emergency financing can be complemented by measures that strengthen Mozambique’s domestic energy resilience. Greater storage capacity, improved transport and port infrastructure, deeper access to trade finance and foreign exchange, more predictable regulation and investment in appropriate refining and energy infrastructure could reduce the economy’s exposure to future external shocks.
The creation of the facility consequently represents both an emergency response and an indication of where vulnerabilities remain. Mozambique has sought to use public financial capacity and the strategic role of Petromoc to keep imported fuel moving, while the disruptions of 2026 have highlighted the broader importance of strengthening the financial and physical systems that underpin energy security across Southern Africa.
