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Angola increases diesel prices again to boost public finances

Angola has increased the price of diesel by a third as part its drive to reduce costly subsidies and strengthen public finances.

Since 2023, the International Monetary Fund has encouraged the African oil producing country to gradually remove fuel subsidies.

The economy of the country is facing pressure due to a drop in global crude oil prices earlier this year. It also faces repayments on external debt of $9 billion by 2025. This includes a Eurobond that matures in November.

Diesel prices have risen from 300 kwanzas to 400 kwanzas per litre, which is the second increase this year.

The Petroleum Products Regulator left the prices of petrol and liquefied Petroleum Gas unchanged.

In October, Finance Minister Vera Daves de Sousa said that fuel subsidies were around 4% on the gross domestic product in 2017. She also stated that the government would continue to remove them in stages.

In May, the IMF announced that it had reduced Angola's initial growth forecast for 2025 from 3% to 2.4%. It cited lower oil prices and tighter external financing conditions.

Angola's social unrest on Friday was not triggered by the petrol price increase in 2023, which sparked deadly protests.

(source: Reuters)