Across Southern Africa, motorists are paying a lot to fill their tanks, from over R20 a litre in South Africa to nearly R30 in Zimbabwe.
Yet, there’s one country where drivers are paying less than half that amount, thanks to a mix of oil wealth, government subsidies, and domestic refining.
That country is Angola, Africa’s second-largest oil producer, where diesel costs around $0.44 (R8.50) per litre.
How Angola keeps its diesel so affordable
1 Oil rich advantage
Angola has a unique advantage that lies beneath its soil. The Star reported that Angola produced an average of approximately 1.098 million barrels of crude oil per day in 2023.
By that time, the country ranked as the third-largest producer in Africa, only behind Nigeria and Libya.
Unlike many of its neighbours that import refined fuel, Angola is able to produce and refine a portion of its fuel locally. According to White & Case, only the one main refinery, the Sonangol‑owned Luanda Refinery, meets about 20‑30% of domestic demand, leaving 70% of fuel products imported.
Angola’s projects like the new Lobito Refinery, are expected to further cut dependence on imports.
Fuel subsidies keep prices low
Another reason for Angola’s cheap diesel is the heavy government subsidy on petroleum products.
For years, Luanda has kept pump prices artificially low to protect households and transport operators from inflation. Africa Press reports that in June 2023 and April 2024 the government introduced price increases, leading to a reduction in subsidies.
However, this comes at a cost. Subsidies have historically strained public finances, prompting the government to begin a gradual subsidy reform in 2023, which led to slight fuel price increases, though still far below regional averages.
How Angola’s diesel compares to its neighbours
In Southern Africa, diesel prices vary widely depending on import reliance and taxation policies:
