Government of Angola announces cuts in fuel subsidies in 2015

30 December 2014

The government of Angola will reduce fuel subsidies in 2015, the country’s President announced Monday in Luanda, a week after the prices of gasoline and diesel were increased by 20 percent on average.

“2015 will be a difficult year in economic terms due to the significant drop in oil prices,” said José Eduardo dos Santos in his end of year message.

The President said there were projects that would be postponed and control of state expenditure would increase as would “discipline and parsimony in budgetary and financial management, in order to maintain stability. ”

The fall in oil prices recorded since June, is forcing the government of Angola to reduce public spending and the cut in fuel subsidies in 2015 is one of the measures.

With this measure the government expects to save more than US$1 billion, if consumption remains the same as this year.

Following a previous increase in fuel prices last September, with an average rise of 25 percent in the retail prices of diesel and gasoline, last Wednesday there was a further hike of 20 percent in prices. (macauhub/AO)