The introduction of the free price system in the sale of fuels in Angola has made the price of a litre of gasoline rise by 39 percent from 115 to 160 kwanzas and diesel by 80 percent from 75 to 135 kwanzas, according to a statement from state oil and gas company Sonangol.
The Ministry of Finance said the introduction of free pricing for most fuel was intended to eliminate the high cost of fuel subsidies provided by the state.
In Cabo Vede (Cape Verde), the Economic Regulation Agency lowered the price of most fuels due to the reduction from 15.5 percent to 15 percent of Value Added Tax (VAT/IVA) that was applied.
The State Budget (OGE) for 2015 determined the increase of the 15 percent VAT rate to 15.5 percent, with the revenue of this half a percentage point channeled into the reconstruction of settlements, infrastructure and economic activities on Fogo Island, affected by the volcanic eruption of 23 November, 2014.
This law was in force until 31 December and based on the legal obligation for IVA to return to a rate of 15 percent, the agency has revised prices, which led to a decrease for most fuels, according to Cape Verdean weekly newspaper A Semana. (macauhub/AO/CV)