Fuel prices in Angola posted an average increase of 46.4 percent from midnight on 27 September, the Angolan press reported.
Amongst other fuels the price per litre of gasoline now costs 75 kwanza (US$0.76), diesel costs 50 kwanza and kerosene costs 35 kwanza.
Despite these price increases oil-based fuels are still subsidised, and in 2013 cost the exchequer 55.9 billion kwanza (US$5.625 billion), about 12 percent of total State Budget expenditure.
The Deputy Director of the International Monetary Fund, Naoyuki Shinohara, in Luanda recently called for the Angolan government to reduce fuel subsidies and adopt “a modern wage policy for public officials.”
Saying that subsidies were around half the level of spending on education, one-third of public investment, or 16 times the total spent on social facilities, Shinohara also argued that “the rationalisation of these subsidies will free up resources to expand the Angolan social network.” (macauhub/AO)