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Sudan’s govt raises gas prices to cut budget gap

Sudan’s govt raises gas prices to cut budget gap
Thursday, 29 October 2020 16:54

The Sudanese government will increase fuel prices in the country, Khairy Abdel-Rahman, the Minister of Energy and Mines reported.

According to the official, prices will be doubled. The pump price of locally produced diesel will rise to 46 Sudanese pounds ($0.8364) per liter from 23 pounds previously while the price of gasoline will increase from 28 to 56 pounds.

According to the authorities, the new measure, which comes into effect immediately, is aimed at reducing the state budget deficit. However, at a time when the country is going through an economic crisis manifested by high inflation, a shortage of necessities, and a depreciation of the national currency, this decision could anger many Sudanese who have already been impoverished by the long years of mismanagement by the al-Bashir regime.

For several years now, Sudan has always practiced a policy of subsidizing petroleum products, which has enabled the population to have access to cheaper fuel. However, this strategy has put a heavy strain on public finances and contributed, according to several analysts, to the economic crisis that led to the fall of General Omar al-Bashir in 2019.

As part of an IMF-led reform program, the country decided to "reform energy subsidies to create room for increased spending on social programs. The government also decided to allow importers to increase the price of imported fuel, up to 106 pounds per liter for diesel and 120 pounds for gasoline, well above the price of domestically produced fuel.

Moutiou Adjibi Nourou

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