Partners for Innovation has presented the preliminary test results of the draft Mozambican biofuel pricing framework.
Based on interviews with stakeholders and literature research, the research identifies three main price mechanisms: market oriented, cost plus price and maximum or fixed price. Different countries apply different types. The research also identifies a set of general requirements for a biofuel pricing system to be effective. And there are some tentative calculations on potential savings that the use of biofuel might achieve. It is still to early to draw definite conclusions for Mozambique
The project started in June. Interviews have been conducted with both public and private parties in Mozambique and abroad. The final results will be presented in a report in September 2014. The report will include practical recommendations for Mozambique on how to improve and finalise the existing biofuel pricing framework. It will also include insight in the pricing needs of the main actors of Mozambique’s biofuel industry and in how biofuel pricing works in a number of related countries, including in Brazil, India, South Africa and the US.