Mozambique Rules Out Subsidies on Bread, Fuel

Mozambique Rules Out Subsidies on Bread, Fuel (News Central TV)

Reports indicate that the Mozambican government has ruled out subsidies on bread and fuel amid a rise in cost of living.

Such measures to rule out the subsidies, according to Prime Minister Adriano Maleiane, are unsustainable and will benefit those who do not require them.

Mozambique’s Prime Minister Adriano Maleiane

The government has been called upon to intervene in the growing pricing of critical commodities.

“We have to know how we manage the crisis of rising fuel prices. Some say that the state should pay a subsidy, but let’s be honest, there is no sustainable subsidy because to give it, it has to come from tax.

“The state wants to give the subsidy to those who actually need it. The same also applies to bread, because of the wheat price. Subsidising the bakery is not sustainable because everyone will buy that subsidised bread, but that is not what the government wants. The government wants to subsidise [only] those who cannot pay,” Maleiane said.

In 2010, Mozambique witnessed deadly demonstrations following a rise in fuel and bread prices.

Six people, including two children, were reported to have been killed during riots in Mozambique’s capital, Maputo, over rising food and fuel prices.

One of those killed was a 12-year-old boy who was shot in the head, according to reports. It was said he had been walking towards one of the protests when police opened fire.

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