The president of the Industrial Association of Angola (AIA) has called for a progressive increase in fuel prices and higher import duties on gasoline-powered vehicles to mitigate what he described as “crazy subsidies.”
Speaking to Lusa regarding the country’s recent fuel price hikes, José Severino argued that the import tax on gasoline cars should already be higher alongside a slightly increased road circulation tax. However, the industrial leader emphasized that these measures must be accompanied by a well-organized and functional public transportation system to prevent trapping the population.
According to the AIA president, discouraging the excessive use of gasoline through fiscal policy is necessary because the heavy financial burden the Angolan state spends on fuel subsidies directly starves critical public sectors. Severino noted that without correcting fuel prices through progressive increases, Angola will fail to achieve the desired quality in its healthcare and education systems.
He added that citizens who own gasoline vehicles are in a position to absorb slightly higher costs, which would free up state budget funds currently being spent at the pump.
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The debate intensified after the price of diesel in Angola rose last Saturday from 400 kwanzas (0,37 euros) to 420 kwanzas (0,39 euros) per liter, while authorities chose to leave the price of gasoline unchanged at 300 kwanzas (0,28 euros) per liter.
On the sidelines of a global debate forum held in Luanda, Severino considered the diesel increase natural but warned it would not fix the country’s broader structural cost imbalances. He lamented that the measure would heavily impact the working class, particularly because public transportation in major urban hubs remains unorganized and fails to offer suitable options for middle-class commuters.
Urban transportation remains a critical issue across Angola, forcing the vast majority of the population to rely on private collective transport and motorcycle taxis. The AIA president insisted that reforming the sector requires opening the public transit market to more private investment to create tiered options, allowing the middle class to pay higher fares for better comfort.
While Severino admitted the diesel hike would likely drive up the cost of basic food items, the Angolan government maintains that gradually phasing out fuel subsidies is a necessary step to reallocate oil revenues toward vital infrastructure and social projects.
