According to a statement from the Petroleum Derivatives Regulatory Institute (IRDP), the prices of the remaining products under fixed price regimes — namely gasoline, illuminating oil and liquefied petroleum gas — remain unchanged.
The evolution of diesel and gasoline prices in Angola since the beginning of the gradual withdrawal of fuel subsidies in 2023 reflects a process of progressive adjustment implemented by the Government, with the aim of aligning prices with market values by the end of 2025.
Since June 2023, the price of gasoline has risen from 160 kwanzas to 300 kwanzas per litre, an increase of 87.5 percent, while diesel has risen from 135 kwanzas to 400 kwanzas per litre, an increase of 165 kwanzas, which corresponds to an increase of more than 120 percent.
Since the beginning of the year, the price of diesel has risen by 50 percent in March, to 300 kwanzas, and has now risen again by another 100 kwanzas per litre.
In 2022, fuel subsidies totalled 1.98 trillion kwanzas, with the government expecting annual savings of around 400 billion kwanzas with their elimination, which could happen by the end of 2025.
The policy of removing subsidies aims to reduce the burden of public spending and redirect resources to priority sectors such as health and education.
However, the price increases have generated criticism, particularly due to the impact on operating costs in sectors such as transport, agriculture and fisheries, and industry, and the worsening of difficulties for low-income families.
The withdrawal of subsidies has been accompanied by social mitigation measures, including specific subsidies for sectors such as agriculture and fisheries, as well as the strengthening of social programmes such as Kwenda (direct transfers to vulnerable families).
The International Monetary Fund has advocated the withdrawal of subsidies, considering that they disproportionately benefit the most privileged sections of the population.
