Angola plans to spend between 3,700 and 3,800 billion kwanzas on fuel subsidies in 2026, compared with 1,700 billion initially envisaged, Secretary of State for Finance and Treasury Ottoniel dos Santos said on Friday, 16 October, in Bangkok.
This new estimate represents more than double the initial allocation. It was communicated in an interview with the Lusa news agency, as reported by Deutsche Welle. The official also told Reuters that spending could reach 3,800 billion kwanzas this year, amid rising energy costs linked to the war in the Middle East.
The gradual reduction in subsidies, begun in 2023, is continuing. The official told Reuters that authorities were moving cautiously to limit the economic and social consequences for vulnerable households.
He also told Reuters that Angola now expects oil to average around 90 dollars a barrel in 2026, compared with 61 dollars in the initial budget scenario.
Replacing general aid with targeted support for vulnerable groups remains under consideration, according to the Secretary of State. He said the government would assess different solutions, used alone or in combination.