JOHANNESBURG – Angola will end petrol subsidies and increase the price of other fuels, the finance ministry said, after last year’s plunge in global oil prices hammered the finances of Africa’s second largest crude exporter.

In February, Angola slashed spending in its 2015 budget, widened its fiscal deficit projections and said it would sharply increase borrowing.

Angola imports most of its fuel due to insufficient refining capacity and it spent around 4 percent of its 2013 budget on fuel subsidies, according to Control Risks.

“Gasoline now joins the free price system, ending the burden on the state of the cost of subsidies,” a ministry statement seen by Reuters on Thursday said, adding that the changes come into effect on September 30.

“The ongoing effort to adopt realistic prices will help strengthen social programmes and reduce inequality, since subsidies benefit the most favoured groups and encourage fuel smuggling to neighbouring countries.”

Angola has been gradually increasing fuel prices in recent months and has saved 110 billion kwanza ($1 billion) from reduced subsidies since October last year, the statement said.

The price of diesel will increase by 25 percent to 75 kwanza per litre, although the state still subsidises 21 percent of the cost, the finance ministry statement said.

State-oil company Sonangol will now determine the price of petrol, the finance ministry said. Angola increased the price of gasoline last September by 25 percent to 75 kwanza per litre.

The International Monetary Fund, which entered a $1.4 billion loan deal with Angola in 2009, has urged the southern African country to reduce fuel subsidies to free spending for infrastructure and encourage the building of refineries.

Fuel price increases have prompted widespread protests in other African countries, including Mozambique and Nigeria.

Angola, which has well-funded security services, has not suffered from serious unrest after previous fuel price rises.


- See more at: http://www.vanguardngr.com/2015/05/angola-to-end-petrol-subsidies-as-oil-drop-bites/#sthash.ogcb2LOb.dpuf

Nice move.. I think Nigeria should also think towards same direction... We cannot be budgeting hundreds of billions for fuel subsidy while other important sectors are suffering... We have to make sacrifices by letting go of fuel subsidy and make more funds available to build infrastructures.

That sounds juicy..

I hope Buhari follows suit

Angola has been gradually increasing fuel prices in recent months and has saved 110 billion kwanza ($1 billion) from reduced subsidies since October last year, the statement said.

This is the approach Jonathan should have taken in 2012, but he insisted on a one-off removal - on the FIRST OF JANUARY.

GEJ had an excellent opportunity to get rid of the subsidy regime but he blew it.

Great decision....

Buhari should just do the needful by removing fuel subsidy in Nigeria on May 29, 2015.

Buhari should head the ministry of petroleum and gas. He should probe the reasons why our refineries have not worked in the last few years.

Osinbajo should head the committee on those to be probed on fuel subsidy payments.

Prof. Tam David West should head the committee on reactivating the moribound refineries.

Babatunde Fashola should be in charge of prosecuting all economic thieves on behalf of the federal government.

Meiji:


This is the approach Jonathan should have taken in 2012, but he insisted on a one-off removal - on the FIRST OF JANUARY.

GEJ had an excellent opportunity to get rid of the subsidy regime but he blew it.

Will you shut up before I land you an e-slap. Nigeria lost a golden opportunity to set the country on a part to greatness but awoof and the spirit of parasitism didn't allow you myopic idiotas to let it succeed. Today, Gej has been proven right. Shame on you all that participated in the 'occupy Nigeria ' protests. Shebi, e don dey clear for una eyes.
Let see how baba one chance will handle the subsidy removal. Meanwhile, I heard Osun state is for sale? Is it true

Nigerians deserve a better Deal.

biafransoul:


Will you shut up before I land you an e-slap. Nigeria lost a golden opportunity to set the country on a part to greatness but awoof and the spirit of parasitism didn't allow you myopic idiotas to let it succeed. Today, Gej has been proven right. Shame on you all that participated in the 'occupy Nigeria ' protests. Shebi, e don dey clear for una eyes.
Let see how baba one chance will handle the subsidy removal. Meanwhile, I heard Osun state is for sale? Is it true

And where in my post did I argue for subsidy to remain? You expected Nigerians to keep quiet when the government chose the 1st of January (a day when many people had travelled to their villages) to remove fuel subsidy (thereby doubling prices overnight)? What can be more callous than that? Is that how to handle such a painful (though necessary) reform programme?

I insist Jonathan bungled the process of subsidy removal because he didn't want to do the hard work of carrying everyone along. Had he sat down with the labour unions and civil society to agree on the need for removal and a phased approach that would have removed the subsidy gradually (like I suggested) the subsidy would have been long gone by now. But your oga wanted to form macho and remove it in one fell swoop, without considering how painful it would be for ordinary Nigerians or even trying to get public buy-in before taking such a drastic step. Don't blame Nigerians for reacting the way they did.

Leadership 101 on Change Management: Any attempt at radical change without buy-in from stakeholders will FAIL.

You can keep abusing me, it won't change anything.

Meiji:


This is the approach Jonathan should have taken in 2012, but he insisted on a one-off removal - on the FIRST OF JANUARY.

GEJ had an excellent opportunity to get rid of the subsidy regime but he blew it.

I hope u understand what ur saying "blew it"

Keneking:
Great decision....

Buhari should just do the needful by removing fuel subsidy in Nigeria on May 29, 2015.

Buhari should head the ministry of petroleum and gas. He should probe the reasons why our refineries have not worked in the last few years.

Osinbajo should head the committee on those to be probed on fuel subsidy payments.

Prof. Tam David West should head the committee on reactivating the moribound refineries.

Babatunde Fashola should be in charge of prosecuting all economic thieves on behalf of the federal government.

The 4 refineries in Nigeria are working...

The problem is that those refineries are over 35 years on average n their 4 combined output is just 445,000 barrels a day even @ full capacity.