Sourcing fuel from Mozambique will be detrimental to suppliers

 By Ntombi Mhlongo

The requirement for paying stamp duties on all fuel imports from Mozambique will result in increased costs for suppliers

The closure of refineries in South Africa is not only posing a threat of fuel supply disruption into Eswatini but will also hit hard oil companies who would dig deeper into their pockets to ensure fuel pumps at service stations don’t run dry. There are mixed feelings among industry players about the latest development that has compelled Eswatini to rely on Mozambique for fuel supply.

While some are of the view that this would be good because they will cut transportation costs because of the short distance between the two countries, some feel that the country cannot rely on Mozambique forever as the neighbouring country will itself face challenges since the issue are global.

“The challenge in fuelsupply is not unique to South Africa, but worldwide. So believe me, if it affects South Africa, it is likely that Mozambique will also be affected. This is a problem engulfing the whole world,” another player said.

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