Ver Angola

Economy

Government promises “best solution” to end fuel subsidy

Finance Minister Vera Daves said this Tuesday that the executive is “following closely” the topic of fuel subsidies, promising to find “the best solution” in view of the “social moment we are experiencing”.

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Speaking on the sidelines of a meeting with the World Bank representative, Vera Daves stressed that "between the social moment we are experiencing and the economic difficulties that the grant generates, naturally the best solution will be found at the best possible time".

Last week, the chairman of the Board of Directors of Sonangol stated that the technical work for the removal of fuel subsidies was already concluded, leaving the final decision to the Government.

The subsidies cost the oil company more than US $ 1.6 million annually and Sebastião Gaspar Martins commented on the matter, which has been put forward by the Government for some years, on the sidelines of a meeting promoted by the Ministry of Mineral Resources Oil and Gas with some media outlets Social.

"The executive has followed the issue closely. We know about the distortions that the subsidy creates for Sonangol itself, the space it creates for smuggling, but we are also aware of the great pressure, of the great difficulties that Angolans have been experiencing", he pointed out the minister.

In October 2019, the Government and the International Monetary Fund (IMF) agreed on the end of fuel subsidies that would only be applied simultaneously with a social transfer program for the most vulnerable families.

In March of this year, Vera Daves had already guaranteed that the withdrawal of fuel price subsidies would be made, but with due caution in view of its impact

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