Image: Jornal de Negócios
The Chairman of the Board of Directors of Sonangol announced on Monday the completion of technical work for the withdrawal of fuel subsidies, leaving the final decision in the hands of the Angolan government.
“All the technical work is done, and now it is up to the decision-making bodies to make the final consultation,” said Sebastião Gaspar Martins, Chairman of Sonangol.
Subsidies currently cost the national oil company nearly $1.9 million annually, while the Angolan state is estimated to spend more than $3.5 billion on fuel price subsidies.
The decision to eliminate subsidies has been contested for years. In March, Angolan Minister of Finance H.E. Vera Daves confirmed that subsidies would be eliminated, but over a gradual period of time, with a view to minimize the impact on domestic economy and households.