Angola to end to fuel subsidies

By on May 26, 2015 in Downstream, Oil & Gas with 0 Comments
Angola will end petrol subsidies and increase the price of other fuels, the finance ministry said, after last year’s plunge in global oil prices hammered the finances of Africa’s second largest crude exporter.
Reuters Africa reports that Angola imports most of its fuel due to insufficient refining capacity and it spent around 4% of its 2013 budget on fuel subsidies. ‘Gasoline now joins the free price system, ending the burden on the state of the cost of subsidies,’ a ministry statement said.
Angola has been gradually increasing fuel prices in recent months and has saved $1bn from reduced subsidies since October last year, the statement said. State-oil company Sonangol will now determine the price of petrol, the finance ministry said.
Source: Reuters

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About the Author

About the Author: Eugene Obiero is the founder of The Africa Resources Post and its predecessor The East African Energy Blog. Eugene has been writing and blogging on energy and extractives in Africa since June 2012. He is based in Nairobi, Kenya and works for Camco Clean Energy (http://www.camcocleanenergy.com/ ) as Senior Manager Africa Projects. He specializes in market entry strategy, research, financial advisory and project management. Eugene has an MBA from The Warwick Business School, University of Warwick (UK). The posts on this blogsite are Eugene's and do not necessary reflect the thinking of his employer, Camco Clean Energy. .

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