Angola to halve fuel subsidies in 2027
By the AFREEQUE newsroom, based on Mercado
Angola’s draft 2027 budget plans to cut fuel subsidies to less than half, with a reference price of $71 a barrel and production expected to reach one million barrels a day. The 37.34 trillion kwanzas budget was submitted to parliament, according to Mercado.
The Angolan government plans to cut fuel subsidies to less than half in 2027, under its draft budget of 37.34 trillion kwanzas, or about $40.9 billion, according to Mercado. State Minister for Economic Coordination José de Lima Massano submitted the draft to National Assembly President Adão de Almeida on Friday on behalf of the executive.
The draft is based on a reference oil price of $71 a barrel and forecasts average production of one million barrels a day, down from the 1.05 million expected in 2026. The government is projecting economic growth of 5.5%, driven by non-oil activities, inflation of 7.27% and borrowing of 15.5 trillion kwanzas. The oil sector is expected to contract by 3.82%, while Angolan crude sold for an average of $93.825 a barrel in the third quarter of 2026, according to data cited by Mercado.
The subsidy reduction builds on Angola’s cuts to fuel subsidies, announced on 19 October. The 2027 budget draft was presented on 30 October with spending of 37.3 trillion kwanzas, according to Angola’s 2027 budget.
