Fri. Jun 21st, 2024

Sudan fuel prices double as all subsidies removed

Sudan has removed all subsidies for imported fuel, doubling the price of petrol and diesel.

The price of petrol will rise from 150 Sudanese pounds ($0.35;£0.25) per litre to 290 pounds while diesel will now cost 285 pounds a litre from 125 pounds, according to the finance ministry.

It said subsidies cost the country a billion dollars a year.

The ministry added that despite the latest increase, the price of fuel in Sudan remained among the lowest in Africa.

Previous price rises have sparked protests.

Sudan is facing a major economic crisis partly due to unaffordable fuel subsidies that are contributing to an annual fiscal budget deficit of about $5 billion in 2019 and growing inflation.

Curbing inflation is a key economic and political priority and this needs addressing the fuel subsidy reform, which has been a politically difficult task.

Stabilizing Sudan’s macroeconomic environment is essential for sustainable economic growth to be possible in Sudan.

Economic reforms carried out since the overthrow of the long-standing president, Omar al-Bashir, two years ago have contributed to the devaluation of the Sudanese currency and a huge rise in inflation to more than 300% a year.


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