The Angolan government announced on Wednesday (22) that revenues are expected to grow by €2.9 billion due to the rise in oil prices, but part of that amount will be used to fund fuel subsidies.
This forecast was announced by Angola’s Minister of State for Economic Coordination, José de Lima Massano, at the conclusion of the first extraordinary meeting of the Economic Commission of the Council of Ministers, which addressed, among other issues, the impact of the conflict in the Middle East on the Angolan economy.
According to the official, the assessment is that the conflict may last longer than initially anticipated, a situation that poses challenges for all countries, including Angola.
“We have an open economy that interacts with the world, exporting and importing goods and services, and therefore we will also feel the direct effects of what is happening in the Middle East,” José de Lima Massano told the press at the end of the meeting.
The official emphasized that there is a direct impact on Angola, as it is both an oil-producing country and an importer of refined products. He noted that the government is projecting that, with an average oil price of around $80 per barrel by the end of the year—above the $61 established in the current General State Budget—this change will result in an increase in revenue of approximately 2.9 billion euros.
“That is what we anticipated with this rise in the price of oil,” he said, adding, however, that there will be no additional spending.
“We will remain within the limit set in the 2026 State Budget; the change we have here, from a debt perspective, is that we will have a lower need. In that 2026 budget, we had planned to tap both domestic and foreign markets to raise around 14 billion euros; with this development, we may have a lower need,” he noted.
The projected amount should help reduce the budget deficit, bringing it down from 2.8% to just over 1%, “thereby improving the fiscal accounts,” the minister explained.
“We still face high costs from importing refined products, which are subsidized; part of the 2.9 billion euros will be spent on subsidies, which will ultimately limit some of our actions and the gains resulting from this unexpected increase in the price of a barrel of oil,” he emphasized.
Source: Lusa
