Fuel subsidy costs rise in Angola and Malta

Finance ministers in Angola and Malta have issued warnings regarding the rising fiscal pressure caused by fuel subsidies.

In Angola, Finance Minister Vera Daves de Sousa stated that public spending on fuel subsidies could reach 2.48% of the nation's GDP by December 2026. While higher oil prices have increased petroleum revenues, the minister noted that these gains are offset by the rising cost of subsidies. She emphasized a cautious approach to the current economic situation, prioritizing debt servicing and existing budget expenditures over new projects.

In Malta, Finance Minister Clyde Caruana reported that the forecasted cost for diesel subsidies in 2026 has surged from €30 million to approximately €75 million in only three months. Caruana noted that while maintaining stable energy prices is a priority, keeping the fiscal deficit below 3% remains a “sacred” objective. He indicated that if subsidy costs continue to rise, spending in other sectors may require review.