Energy Capital & Power

Angola to Increase Fuel Export Tax by 230%

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The Angolan government is considering updating the applicable tax on fuel exports. Secretary of State for Oil and Gas, José Alexandre Barroso’s proposal to increase the tax rate to 230% was submitted to parliament for approval under the presidential decree.

In Angola, Africa’s third-leading oil producer, domestic fuel prices are lower compared to other markets on the continent; a liter of gasoline is priced at 160 kwanzas ($ 0.25), and a liter of diesel costs 135 kwanzas ($0.21), whereas in neighboring countries prices for the same amount of fuel can reach $1 or higher, thus making Angola an attractive destination for smugglers. With the proposed tax increase and robust border control measures, the government is confident that it can provide much needed support to eradicate fuel smuggling from Angola to neighboring countries.

“We want to grow and become a strong industrial market in Africa, the first step to achieve these goals is to protect the national economy, we must take the right measures today to protect business and assure future investors that the government is committed to fair play and good practices that create a favorable business environment,” Barroso said.

Angola imports 8o% of its domestic fuel consumption. In 2019, the country spent $1.7 billion to import three million metric tons of fuel.

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Zenildo dos Santos

Zenildo dos Santos