Africa-Press – Angola. The Minister of Mineral Resources, Oil, and Gas, Diamantino de Azevedo, on Wednesday stated that the maintenance of price subsidies for oil by-products by the Angolan government is discouraging investment in this business, making it unattractive and unprofitable.
The minister provided this information when questioned about the lack of fuel stations in many regions of the country by participants of the Forum on Investment in the Mineral Resources, Oil, and Gas Sector, held in the northern Cuanza Norte province.
De Azevedo said the oil by-products business in Angola is still unprofitable for fuel importers and that Sonangol, the state oil company, is the only institution that imports fuel into the country, despite the liberalization of the market to allow more investors to enter.
He said that gas station owners do not want to import fuel and instead purchase it from Sonangol, as a result, Sonangol bears the burden of the loss and loses a lot of money.
The minister said that Sonangol lacks the capacity to open gas stations in every location where they are needed and that the situation worsened further with the increase in the number of municipalities without gas stations after three more provinces were created.
Diamantino de Azevedo said this situation requires a review of the country’s fuel station needs as outlined in the National Development Program for the sector from 2022 to 2027.
Despite this, the minister encouraged entrepreneurs to view the country’s fuel infrastructure deficit as an opportunity to invest in oil products and reduce difficulties.
He considered this a good investment opportunity since it allows entrepreneurs to combine the sale of oil products with other businesses, making the investment more profitable.
Diamantino de Azevedo said the country needs significant investment in supply infrastructure at all levels.
Data released at the event indicate that by 2022, the country had 900 operational fuel stations and 41 municipalities without such infrastructure. This number has increased with the creation of new municipalities.
The event is addressing, in four panels, topics such as “The mining potential of Angola and Cuanza Norte,” “Opportunities to boost the mineral resources production chain,” “Investment opportunities in the oil, gas, and biofuel sector,” and “Investment opportunities in the oil sector – petroleum derivatives.”
Other topics to be addressed include “Banking and investment in the sector, local development dynamics,” “Synergy with the mining and oil sector,” and “Education and training in the mining and oil sector.”
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