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Fiscal pressure from fuel subsidies in Angola and Malta

Updated 3 times since CLSTR started tracking revisions of this situation.

What changed

2026-10-06 11:08 UTC → 2026-10-25 11:21 UTC · added removed

Finance ministers in Angola and Malta have expressed concerns regarding the increasing fiscal pressure caused by fuel subsidies. In Angola, Minister Vera Daves de Sousa warned that public spending on these subsidies could reach 2.48% of the nation’s GDP by December 2026, noting that rising petroleum revenues are being offset by these costs. She has emphasized prioritizing debt servicing and existing budget expenditures over new projects. In Malta, the government is facing faces a significant budgetary challenge due to its policy of maintaining fixed fuel prices. While this has resulted in Malta having the cheapest diesel in the European Union, the cost to cover the gap between regulated prices and global market rates has surged. Finance Minister Clyde Caruana has announced reported that forecasted diesel subsidy costs for 2026 rose from €30 million in May to approximately €75 million by late August. Overall, energy and fuel subsidies are expected to cost the government approximately €400 million this year, with costs projected to remain at similar levels in 2027. He Caruana emphasized that these subsidies are essential to shield households and businesses from international volatility, warning that removing them could lead to an ‘economic catastrophe.’ Over the past five years, the government has spent €1.35 billion on such subsidies, a figure Caruana noted exceeds exceeding the €800 million spent on COVID-19 related measures. To manage these costs, the government is planning new borrowing through stock issues of between €300 million and €500 million, which could result in annual interest payments of €12.9 million to €22.5 million. While Malta’s economy is forecast to grow by 3.7% in 2026, the Malta Fiscal Advisory Council has cautioned that the national deficit might exceed forecasts unless spending growth is significantly reduced.

Versions

  1. 2026-10-25 11:21 UTC Fiscal pressure from fuel subsidies in Angola and Malta
  2. 2026-10-06 11:08 UTC Fiscal pressure from fuel subsidies in Angola and Malta
  3. 2026-09-30 11:43 UTC Fiscal pressure from fuel subsidies in Angola and Malta
  4. 2026-09-26 17:48 UTC Fiscal pressure from fuel subsidies in Angola and Malta

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