Lack of fuels in Angola is due to difficulty accessing currency

7 May 2019

The shortage of fuel in Angola’s fuel stations is due to the difficulty in accessing foreign exchange to pay for the import of refined products, Angolan state oil company Sonangol said in a statement released in Luanda.

Sonangol noted in the statement that it imports refined oil in foreign currency, to be sold domestically in Kwanzas, the Angolan currency.

The Angolan State, through Sonangol, spent US$221.43 million in the first quarter of 2019 on imports of 397,450 tonnes of refined oil products.

Sonangol also pointed to the “high debt” of the main customers in the industrial segment, which consumes approximately 40% of buy foreign currency, usually dollars and euros.

Systematic failures of coastal fishing vessels, according to the oil company, also contribute to the shortage, as well as other factors, such as the state of national roads, and weather, which, in certain periods, hamper the mooring of ships carrying refined oil products.

Although Angola is Africa’s second largest oil producer, with a production of around 1.5 million barrels per day, its refining capacity is limited to the Luanda Refinery, which started operating in May 1958, and has the capacity to process just 57,000 barrels of oil per day. (Macauhub)