Luanda: The Angolan state spent approximately 3 billion US dollars on fuel subsidies in 2024, creating significant challenges in managing the country's economy, as stated by the Minister of Mineral Resources, Oil, and Gas, Diamantino Azevedo.

According to Angola Press News Agency, Azevedo highlighted during a press briefing at the inaugural session of the Mining Law specialization course in Luanda that the financial burden of fuel subsidies complicates the operations of Sonangol, the state oil company, particularly in financing the importation of refined products. "Maintaining fuel subsidies makes managing the country's economy very difficult. Last year alone, for example, the cost of this expenditure amounted to nearly three billion dollars, which puts the state oil company in a difficult position when it comes to financing fuel imports," the minister said.

Azevedo also pointed out that the current subsidy system inadvertently benefits neighboring countries where fuel prices are significantly higher, thus encouraging the smuggling of refined products. He advocated for a shift toward direct subsidies targeting those in genuine need rather than a blanket subsidy approach.

He acknowledged the potential challenges that the gradual removal of fuel subsidies might impose on the population, which underscores the importance of enhancing public transportation for those with limited financial resources.

In terms of the Mining Law Specialization Course, organized by the Faculty of Law of the Catholic University of Angola, Azevedo stressed the necessity for legal regulation of mining activities. He emphasized the importance of specific legislation to ensure that mining development occurs successfully and benefits the rightful owners of the mineral resources.