The chairman of the board of directors of state oil company Sonangol said on Friday that the company feels the need to remove the fuel subsidy, but that this is the state’s decision.
Gaspar Martins, speaking at a press conference dedicated to the 47th anniversary of the company, emphasized that, despite this need, it is necessary to understand that this decision does not depend on one company.
“It has a lot to do with what can be considered an opportune moment, and until we find that opportune moment, we will continue to cooperate in the conditions in which we find ourselves. If you ask us if we need it, we will answer,” he said.
Gaspar Martins emphasized that in a situation where subsidies are canceled, the company will not have such a need to enter the market in search of additional capital.
The president of the Angolan state oil company stressed that when the subsidies are removed, the company will feel “easier relief”, which will also allow other players to enter this market.
“Today, Sonangol is the only company that imports fuel,” said Gaspar Martins, recalling that Pumangol and Total refused to enter this market, “as long as the situation with subsidies remains the same.”
“It is quite likely that with subsidies there will be a redistribution of import capacities and, possibly, other “players” who can participate in this business, which turns out to be profitable when withdrawn,” he stressed.
“I repeat, we are partners with the state, we are not going to force this at any cost only after we reach an agreement,” he added.
In turn, Balthazar Miguel, Chief Executive of Sonangol, stressed that the issue of subsidies is resolved annually with the government and is now at the final stage of completing this process this year.
The removal of fuel subsidies was one of the measures most advocated by the International Monetary Fund (IMF) during the duration of the latest financial adjustment program worth more than five billion dollars (4.73 billion euros).
Angola is the fourth country in the world where it is cheaper to fill a fuel tank. While in Europe, and in Portugal in particular, motorists choose trucks and consider fuel consumption when buying, in Angola, a country that has a fleet of reliable jeeps and pickups, this is not the case. does not seem to be a problem, since it is almost always cheaper to “water” a car than to quench a thirst.
While the average price of 1.5 liters of bottled water is around 180 kwanza (34 cents), a liter of petrol costs 160 kwanza (30 cents), five times less than in Portugal, according to Global Petrol Prices, with data updated this month.
In the first quarter of 2022 alone, the Angolan government subsidized 339.7 billion kwanza (€630 million) in fuel distributed throughout the country.
Author: Portuguese
Source: CM Jornal
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