The Mozambican government is preparing an upward revision of the Fuel Levy applied to petrol and diesel, with the aim of strengthening financing for the conservation and maintenance of the national road network. The proposal comes just months after fuel prices were raised in May and could represent an increase of 2.92 meticais per litre of petrol and 6.36 meticais per litre of diesel.

According to Lusa, the intention was announced by the Minister of Transport and Logistics, João Matlombe, during a briefing to members of the National Assembly as part of parliamentary sessions that began on Wednesday, 4 June.

The minister said the government intends to update the Fuel Levy to the equivalent of 15 US cents per litre — approximately 10.63 meticais — and to introduce a periodic adjustment mechanism linked to inflation and exchange rate movements. "Currently, the levy corresponds to around 11 US cents per litre of petrol and six US cents per litre of diesel, levels that are below those applied in the majority of countries in the region," Matlombe said.

The proposal seeks to bring national fuel taxation closer to levels practised in countries of the Southern African Development Community (SADC), where the equivalent levy averages between 15 and 20 US cents per litre.

The announcement follows fuel price increases of 45.5% for diesel and 12.1% for petrol implemented in May, a move the government justified by citing the effects of the Middle East conflict on international energy markets.

According to projections presented to lawmakers, the levy revision would add 2.92 meticais per litre to petrol and 6.36 meticais per litre to diesel, although the definitive impact on retail pump prices has not yet been announced. Beyond the per-litre adjustment, the government also intends to revise the legal framework to raise to 90% the share of Fuel Levy revenues allocated to the Roads Fund.

Matlombe said the proportion of these revenues ring-fenced for the road sector was reduced from 70% to 40% in 2025, a change that significantly diminished the resources available for infrastructure maintenance. By combining both measures, the government estimates it could mobilise approximately 20.8 billion meticais per year to finance interventions across the national road network.

With the additional revenue, the government plans to fund the maintenance of a further 10,932 kilometres of roads, secure approximately 330 kilometres of periodic maintenance per year, and make four billion meticais available annually for the rural roads programme.

Matlombe justified the need for increased funding by pointing to the progressive deterioration of road network conditions, noting a significant decline in the proportion of roads rated in good or reasonable condition. According to the data presented, the share of paved roads in good or reasonable condition fell from 91% in 2015 to below 60% in 2025. For unpaved roads, the same indicator declined from 70% to 45% over the same period.

The minister added that in 2020, routine maintenance programmes covered only 40% of the classified road network, underscoring the financial constraints facing the sector. Despite these funding difficulties, Matlombe assured lawmakers that the cost of road construction contracts in Mozambique is in line with standards applied in neighbouring countries in the region.

Another factor highlighted by the minister is the damage caused by extreme weather events, particularly cyclones, which have undermined road infrastructure preservation. As an example, Matlombe cited the impact of Cyclone Freddy, which struck Mozambique in 2023 and caused estimated damage of 18.3 billion meticais.

The cyclone affected 13,886 kilometres of roads, of which 5,448 kilometres were destroyed, in addition to causing damage to 47 bridges. "This figure corresponded to almost three times the country's annual maintenance budget for the classified road network," Matlombe said.

The minister also disclosed that over the past five years, resources formally secured to repair damage caused by climate events covered less than 10% of identified needs. In response to this situation, the government is also advocating for the creation of a reserve account to address climate emergencies without compromising the regular road maintenance budget.