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AfrOil POLICY AfrOil

Sonangol arm slated to cut fuel supplies to

São Tomé and Príncipe over unpaid debts

ANGOLA/SÃO TOMÉ ANGOLA’S National Fuel and Oil Co. (ENCO), similar situations several times over the last few
a division of the national oil company (NOC) years and have resolved the impasse each time,
Sonangol, was expected to cut petroleum prod- he said in remarks broadcast by Rádio Nacional.
uct deliveries to the island state of São Tomé and “There have been regular failures by EMAE
Príncipe by 50% on Tuesday, March 1 due to to [pay] ENCO, and from time to time – not
non-payment of debts. only in this government [but] in the previous
As of press time, it was not clear whether government and in others – ENCO plays its
ENCO had upheld its threat. According to role as a commercial company, demanding
reports from Ver Angola, the Sonangol sub- more payments [from] EMAE,” he commented.
sidiary’s board of directors had set the deadline “Therefore everything after also falls under the
in a letter to Empresa de Água e Eletricidade responsibility of the state.”
(EMAE), the national water and power provider Abreu continued: “When payment is not
of São Tomé and Príncipe, dated February 22. made, there is this situation of fuel reduction for
In the letter, ENCO said that if EMAE did not energy production, and then the state has to find
settle its bill, it would have to reduce the volume a way to negotiate directly with Sonangol and
of fuel delivered to the island state by 50% as of the Angolan government. We know what the
March 1. It also stated that the utility faced “the cause is. It’s that there’s no money.” ™
penalty of not being able to replenish the ‘stocks’
at the next import, scheduled for April 16, 2022,”
but did not offer further details.
Thus far, the Sonangol subsidiary com-
plained, EMAE has neither paid its bill for the
fuel it has been receiving to run its generators
nor made any attempt to work out a plan for the
settlement of overdue bills. This failure to pay
has imposed financial strains on ENCO, it said.
It did state, though, that it was ready to
resume regular deliveries of fuel in the usual
amounts whenever EMAE was able to ensure
payment, provided that ENCO “manages to
gather the necessary financial means to guaran-
tee the purchase of fuel from third parties.”
According to Osvaldo Abreu, São Tomé
and Príncipe’s Minister of Infrastructure and
Mineral Resources, this is hardly the first time
ENCO has been at odds with EMAE over pay-
ment problems. The two sides have been in ENCO diesel storage tank in São Tomé and Príncipe (Photo: ENCO)

South Africa, Namibia set to hike

domestic fuel prices this week

SOUTH AFRICA/NAMIBIA BOTH South Africa and Namibia are set to see new prices taking effect on Wednesday.
petroleum prices rise this week, owing to the The retail price of both grades of gasoline
increase in global crude oil prices. will climb by ZAR1.46 ($0.094) per litre, he said,
South Africa’s Mineral Resources and Energy while the price of 0.05% (500 ppm) and 0.005%
Minister Gwede Mantashe said on Monday, (50 ppm) diesel will go up by at least ZAR1.44
February 28 that gasoline and diesel prices were ($0.093) and ZAR1.48 ($0.096) per litre respec-
scheduled to increase as of March 1, with the tively, he said.

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