The Angolan government on Friday cut its subsidies on fuel prices triggering an increase in fuel price. According to Reuters, the country’s national oil company Sonangol cut subsidies in a bid to ease the burden of subsidies on the government following the drop in global oil prices. The resultant impact was a 39% rise in fuel price per litre to 160 kwanza ($1.19) per litre and diesel by 80 percent to 135 kwanza.
Angola’s foreign currency has also fallen against the dollar by about 30% in the last one year and finds itself in a similar situation with oil dependent countries like Nigeria. Nigeria also announced a cut in subsidies but revealed fuel price will now be N86 instead of the N87 Nigerians are expected to be paying officially. Nigerian on the average pay over N115.36 for fuel according to the data from the National Bureau of Statistics, suggesting the subsidies actually do not reflect reality.