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.
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 (IMF). 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 told Reuters that fuel subsidies accounted for around 4% of Angola’s GDP in 2023. She confirmed that the government would continue to remove subsidies in phases to free up public funds for other spending priorities.
The IMF, in its latest outlook, revised Angola’s projected economic growth for 2025 down to 2.4% from an earlier estimate of 3%, pointing to the impact of weaker global oil prices and tighter external financing conditions. 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 $9 billion next year, including a Eurobond due in November 2025. Meanwhile, prices for petrol and liquefied petroleum gas remain unchanged for now.
While a previous petrol price increase in 2023 triggered deadly protests, there were no immediate reports of unrest following Friday’s diesel hike. The government’s cautious, phased approach reflects a balancing act between meeting IMF-backed reforms and maintaining social stability during a sensitive economic period.
Source: Further Africa
