Anti-fuel price hike rallies led to the deaths of more than twenty people in Angola, leading to concerns. As per the report of multiple sources including the British Broadcasting Corporation, the government of Angola increased fuel prices in early July but the rise led to protest rallies and demonstrations, one of the most widespread and disruptive recent waves of protest. Clashes between law enforcement agencies and demonstrators have led to 22 deaths in Luanda, the capital city and —additionally — over 1000 demonstrators were arrested from the protest called by taxi drivers and later participated by thousands of people. But it remains unclear whether the situation will be calmed down in Angola soon.
Fuel price hikes are not uncommon at all. Fuel prices are often hiked in many countries and Angola is no exception. Angola, an oil-rich country and one of Africa’s largest oil producers, has increased its fuel prices several times including in 2023 and 2025. But Angola’s recent history of fuel price hikes is a consequence of its commitment to economic reforms, particularly the removal of fuel subsidies as part of an agreement with the International Monetary Fund’s (IMF) loan designed to reduce austerity and improve the economy. Not only this time, but past fuel price hikes also led to anger and demonstrations. But given the death of several demonstrators and several other reasons including the frustrations among people over the situation of Angola especially under the rule of the MPLA party, further deterioration of the situation is not unlikely altogether.
It is not unreasonable to increase fuel prices in Angola, which has given substantial fuel subsidies for years. Even if there is an increase, the price of diesel remains low such as around 40 US cents per liter. The hike will reduce the government’s burden on subsidies on fuel, lead to increased fiscal space for public investment and social spending — potentially higher energy efficiency — and encourage alternative energy sources. This will also help the government redirect funds toward crucial sectors like health, education and infrastructure, and can promote a more efficient allocation of resources by reducing energy waste. But the negative economic and other impacts of fuel price hikes are huge in Angola and these are undeniable.
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The price increase for fuel such as over 33 percent in diesel has directly led to higher public transport fares and increased prices for essential goods, exacerbating the cost of living for Angolans. This can also increase poverty. But it disproportionately affects the poor and ordinary citizens of Angola, which faces mounting economic headwinds and has high poverty. Notably, over 50 percent of the people are living multidimensionally poor and on less than $3.65 a day and there is high unemployment. Over 80 percent of the workforce is in the informal sector, earning low wages. The rising fuel costs and essential goods may further erode their meager earnings.
The government’s attempts to provide targeted social protections are good moves. But they are seen by many as insufficient, highlighting a deep-rooted discontent fueled by government policies including fuel policies — along with other causes including perceived corruption. To desirably deal with the crisis, the government needs to hold talks with demonstrators. Though the government is said to have had talks with taxi organizations, many others including Anata, a major taxi organization, need to be talked with. Talks will help address concerns and resolve the crisis resulting from the fuel price hike.
The IMF includes loan conditions in many countries and there is no exception for Angola. But it’s setting of conditions by keeping the possible negative outcomes into consideration will help avert such situations. Promoting a gradual phase-out of fuel subsidies, accompanied by implementing targeted and temporary social safety nets to protect vulnerable populations, may be helpful. But the government needs to refrain from the use of excessive force and the killing of demonstrators.
Amir M Sayem
Chief Editor
Dhaka Opinion Magazine
