Africa-Press – Angola. The Angolan state spent around 3 billion US dollars in fuel subsidies in 2024, making it difficult to manage the country’s economy, the country’s Minister of Mineral Resources, Oil, and Gas Diamantino Azevedo said on Thursday.
Speaking to the press on the sidelines of the inaugural session of the Mining Law specialization course in Luanda, Azevedo stressed that this scenario has made it difficult for Sonangol, the state oil company, to finance the importation of refined products into the country.
“Maintaining fuel subsidies makes managing the country’s economy very difficult. Last year alone, for example, the cost of this expenditure amounted to nearly three billion dollars, which puts the state oil company in a difficult position when it comes to financing fuel imports,” the minister said.
The minister also said that the subsidy indirectly benefits some neighboring countries, where fuel prices are two or three times higher than in Angola. This encourages the smuggling of refined products.
According to Azevedo, it would be fairer to provide direct subsidies to those who need them than to subsidize everyone. He added that the country needs to gradually eliminate fuel subsidies and take measures to support and facilitate the lives of those most in need.
Despite this, Diamantino Azevedo recognizes the difficulties the population may face with the gradual withdrawal of fuel subsidies, underscoring the need to improve public transportation for those with less purchasing power.
Regarding the Specialization Course in Mining Law, promoted by the Faculty of Law of the Catholic University of Angola, the minister emphasized that mining activity needs regulation from a legal standpoint.
He added that it is necessary to have specific legislation to develop this activity successfully and for the benefit of the people who own the mineral resources.
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