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Angola's fuel distribution operators seek to join fuel import market

LUANDA
2021-10-29 17:33

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LUANDA, Oct. 29 (Xinhua) -- Fuel distribution operators in Angola on Thursday called for the liberalization of fuel importation to enable new companies to join the import market monopolized by the state oil company Sonangol.

Speaking at the International Conference on Oil, Gas and Renewable Energy, Francisco Aires, CEO of the energy and oil products company Sonangalp, said market liberalization is needed for new competitors with investment strategies to enter the local market.

"Liberalization will allow the entry of other companies, as long as there is legislation for operators to obtain a license and operate in a regulated manner," Aires said.

The establishment of sustainable prices monitored by the Regulatory Institute of Petroleum Products would be needed, Aires said.

Ivanilson Machado, CEO of the fuel distributor Pumangol, who defended the liberalization of the import of refined fuels, said the price established in Angola is the lowest in the Southern African Development Community region, which encourages fuel smuggling.

"We have no way to combat smuggling, with the current prices. We can talk about a lot of things and restrict fuel in border areas, but that is not the solution to smuggling," Machado said, adding that the solution to smuggling is not to encourage prices of less than 1 dollar per liter.
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