Government moves ahead with removal of fuel subsidies

Angola has increased the price of diesel by one-third, as the government pushes ahead with its phased removal of fuel subsidies to stabilise strained public finances, reports 360Mozambique. From Friday, the cost of diesel rose from 300 kwanzas to 400 kwanzas per litre (about $0.44), marking the second diesel price hike this year. Africa’s second-largest oil producer has been gradually cutting fuel subsidies since 2023, a move encouraged by the International Monetary Fund. The cuts aim to reduce fiscal pressure as the government faces mounting external debt obligations and economic headwinds. Finance Minister Vera Daves de Sousa recently confirmed that the government would continue to remove subsidies in phases to free up public funds for other spending priorities. The nation’s heavy reliance on oil revenues means any prolonged dip in crude prices directly strains its fiscal health. The diesel price hike comes as Angola braces for external debt repayments of about $9bn next year, including a Eurobond due in November 2025.