Luanda — A litre of petrol will cost, as of this Friday, with the entry into force of the new rate, that is 300 kwanzas (USD 0,51) per litre, against the previous 160 Kwanzas (roughly USD 0,27).
The measure, announced on Thursday by the Executive, does not cover taxi drivers and motorcycle taxi drivers, who will continue to pay 160 kwanzas/litre of petrol.
The Executive made it known that the remaining fuels derived from petroleum, such as diesel and kerosene, will maintain current prices.
After the announcement of the new price of petrol, until the last minutes of Thursday, there was intense demand for the aforementioned fuel at gas stations, leading some drivers to wait for more than three hours to get served.
The minister of State for Economic Coordination, Manuel Nunes Júnior, who was speaking at a press conference, explained that, in 2022, the State expenditures with fuel subsidies were in the order of USD 3.8 billion. This amount, he explained, represents 92% of total spending last year on education and health, stressing that this is an unsustainable situation.
He also alluded to the price that Sonangol pays in the international markets, in the order of 583 Kwanzas (USD 0,98) per litre of petrol (gasoline), with its sale at the pump being KZ 160, which means that the difference is borne by the State, that is, at first line by Sonangol.
According to Manuel Nunes Júnior, the money that the State will retain with the gradual end of fuel subsidies will allow the country to observe social improvements" with the resolution of serious problems, pointing to housing and social security as an example.
The minister also warned that "the effects will not be immediate, but they are guaranteed in the long term, namely in health and education".
With the withdrawal of the gradual subsidy on the price of petrol, the State saves 400 billion kwanzas (USD 673.6 million), with a weight of 40% in fuel subsidies.
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The government refers that the attribution of subsidies to fuel prices is an economic and social measure, resulting from a combination of fiscal policy and income and price policy, supported by Presidential Decree n.º 206/11, of July 29, which approves the General Bases for the Organization of the National Price System and by Presidential Decree No. 283/20, of 27 October.
Until December 2022, market prices stood at 452%, 578%, 202% and 279% above the prices set, respectively for LPG (kitchen gas), Illuminating Oil, Petrol and Diesel, having generated subsidies at prices of Kz 551 billion Kwanzas (USD 927.7 million), 1.2 trillion kwanzas (USD 2.01billion), and 1.98 trillion kwanzas (USD 3.34 billion), respectively in the years 2020, 2021 and 2022, totaling Kz 3.73 trillion (USD 6.3billion) for the aforementioned period.
