The decision was taken in light of Monday's strike, where minibus drivers, who serve as the public transport in Maputo, called for an increase in their fares as fuel prices have continued rising.
The Metropolitan Transport Agency of Maputo City (AMTM) was in charge of the announcement, which said that the subsidy measure would be in force for at least six months, adding that no change would be made in the current transport fares.
"The government's concern is the passenger; it's the citizen. Right now, 40 million U.S. dollars are already available to cover the costs," said Antonio Matos, AMTM Director.
Thousands of people took to the streets of Maputo, Mozambique’s capital, on Monday to protest against another rise in fuel prices in the country.
Last Friday, the National Energy Regulatory Authority announced the latest price adjustment where petrol price rose to 1.36 dollars per liter from 1.32 dollars; on the other hand, diesel price rocketed from 1.24 dollars to 1.38 dollars. The cooking gas price was also up by almost 20 percent.