From The Rio Times · Amina Diarra · · 1m 20s
Mozambique Ends Minibus Fuel Subsidy
Mozambique stops fuel aid for minibus operators after three months of subsidies.
In brief
Mozambique stops fuel aid for minibus operators after three months of subsidies. Mozambique ended a temporary fuel subsidy for minibus operators, which cost $4.9 million, as operators demand fare hikes starting November 1. Originally reported by The Rio Times.
Mozambique ends minibus fuel subsidy
Mozambique has ended the temporary fuel compensation paid to licensed minibus operators in the Maputo metropolitan region.
Subsidy cost $4.9 million
The government paid 307 million meticais (about US$4.9 million) to 2,476 vehicles in the first month, 2,565 in the second, and 847 in the third.
Monthly aid per minibus
A 15-seat minibus received 35,000 meticais a month (about US$553), with larger buses getting more.
FEMATRO proposes fare hikes
FEMATRO, the road transporters' federation, wants to raise fares from 1 November, warning of service disruption if not approved.
Transport agency offers smaller hikes
The metropolitan transport agency suggests 3 to 5 meticais (about US$0.05 to US$0.08) for fare increases starting November 1.
Why the subsidy ended
Fuel prices jumped in May, causing strikes and stranded commuters, leading to temporary aid until sustainable solutions were found.
What happens next
Operators warn of service disruption if fares are not raised by November 1, as the government has not set final fares or replacement support.
What to remember
Mozambique ended a temporary fuel subsidy for minibus operators, which cost $4.9 million, as operators demand fare hikes starting November 1.
