MAPUTO, Aug. 12 (Xinhua) -- The Mozambican government has approved an emergency financing mechanism to help secure fuel imports and maintain domestic supplies during periods of fuel crisis, the Mozambique News Agency reported Wednesday.
Under a resolution approved by the Council of Ministers, the mechanism will operate through state-owned fuel company Petromoc, using an account held by the Ministry of Finance at the Bank of Mozambique, the country's central bank.
According to the resolution, the finance minister, in coordination with the minister responsible for fuels, may authorize the use of up to 50 million U.S. dollars under the payment facility to ensure the import of liquid fuels for the domestic market in the event of a supply crisis.
Under the arrangement, Petromoc will have access to the account, enabling it to make payments to foreign fuel suppliers on behalf of qualifying importers.
The measure comes amid renewed concerns over fuel shortages in parts of the country following supply disruptions in April and May, which led to long queues at filling stations in Maputo and other cities.
Mozambican authorities have attributed the supply difficulties to disruptions in international fuel trade linked to tensions in the Middle East, as well as financial difficulties faced by some fuel distributors and foreign currency shortages. ■