Subsidy on Fuel, Bread Not Sustainable, says Mozambican Govt.
The Mozambican government has ruled out subsidies on bread and fuels amid a rise in cost of living.
Prime Minister Adriano Maleiane said such measures were unsustainable and would end up benefitting people who do not need them.
There have been calls for government’s intervention over escalating prices of essential 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,” Mr Maleiane told business owners in Nampula province during a visit.
“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,” he added.
In 2010, Mozambique witnessed deadly demonstrations following a rise in fuel and bread prices.