(3 minutes read)
· Fuel prices have almost doubled in Sudan. Recently, as a part of the economic reforms, country has lifted the fuel subsidies at the instance of the International Monetary Fund (IMF)
· This unpopular reform is creating consternation among ordinary citizens, who have to bear the brunt due to the cascadingeffect of the fuel price increase.
· Now, a liter of gasoline is sold at 290 Sudanese pounds as against 150 pounds earlier
Fuel prices have almost doubled in Sudan. Recently, as a part of the economic reforms, country has lifted the fuel subsidies at the instance of the International Monetary Fund (IMF). This unpopular reform is creating consternation among ordinary citizens, who have to bear the brunt due to the cascading effect of the fuel price increase. Now, a liter of gasoline is sold at 290 Sudanese pounds as against 150 pounds earlier.
The price of diesel was also increased by 128% from 125 to 285 Sudanese pounds. These changes effected by the Sudanese Finance Ministry had immediate effect. The ministry also increased the prices in last October also-almost doubled- which led to several protests over high cost of living.
The IMF, in return for the bailout package, has told the Sudanese government to implement several austerity measures including removal of state subsidies. Sudanese authorities also introduced a floating exchange rate regime to combat the black market in foreign currency in February. Sudan has been passing through a difficult economic trajectory for quite some time since the ouster of former President Omar al-Bashir in 2019 after 30 years of rule marked by armed conflicts. Sudan has a whopping foreign debt of Euro 49 billion foreign deb., which the IMF thinks could be reduced through austerity measures like cut in fuel subsidy.
