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Sudan’s ruling party moves closer to lifting fuel subsidies: reports

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May 29, 2012 (KHARTOUM) – The parliamentary bloc of Sudan’s ruling National Congress Party (NCP) has reportedly approved plans to lift subsidisation of fuel commodities to mitigate the country’s economic crisis.

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The government’s plan to lift fuel subsidies has been an open secret since the NCP-dominated parliament refused to approve it in the previous term.

Some MPs warned back then that the move is likely to spark a popular uprising given the economic hardships the public has been enduring since the country lost three-quarters of its daily oil output, and hence it’s main source of hard currency revenues, with South Sudan’s secession last year.

The Sudanese government has been speaking of the necessity to apply austerity measures, including cuts in governmental salaries, to help the country weather the effects of losing oil revenues.

Local newspapers on Tuesday quoted unidentified NCP sources as saying that the party’s parliamentary bloc had reached an understanding with the party’s economic sector to “gradually” lift subsidies on fuel commodities but with the commitment to offer direct subsidisation of other commodities to poor pockets of the society.

They revealed that the party’s parliamentarians had accepted the proposal after NCP’s economy officials presented them with a report explaining the situation. They further said they expect the proposal to be referred for final approval to the NCP’s leadership office chaired by President Omer Al-Bashir.

The sources however declined to divulge whether subsidisation will be lifted from both Fuel and Gasoline or only one of them.

In the same context, the NCP’s organisational secretary Hamid Sidiq on Tuesday went to great lengths to justify the potential suspension of fuel subsidies. He also confirmed that the measure is among other options being discussed to weather the economic crisis.

Hamid claimed that subsidised fuel commodities were being smuggled from Sudan into neighbouring countries. He added that the price of fuel per gallon in Sudan is $2.5 while in Ethiopia it is $4, Chad $6 and South Sudan $7.

“Sudanese people cannot afford the burden of supporting other nations in the continent” he said.

(ST)

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  • 30 May 2012 11:19, by Pif Paf

    The People of Sudan are aware of the challenges and are willing to work through it. Lifting of the fuel subsidies will allow the goverment to better equip the SAF plus eliminate fuel smuggling just like how the black market has been eliminated. Increasing Oil, Agriculture, gold and other industry production will bring back sudans economy once the 3 year plan in completed.

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    • 30 May 2012 11:54, by Ayom Ayom

      Haaaaa, the country is in trouble(Khartoum)

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      • 30 May 2012 11:58, by Joseph Canada

        The country is heading the greatest way!! thats what Beshir like to do. Congratulations North. The downturn have just started.

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    • 30 May 2012 12:56, by okucu pa lotinokwan

      After 3 yrs the price of Fuel will be an opposite,compare Sudan and South Sudan currently, since the borehole is with the South sudan no worried at all,the stolen fuel from the south Sudan will soon get finish,whereby uprising will start.If Omer is not yet been arested by the ICC,there will be regime change in Khartoum.

      OKUCU PA LOTINOKWAN

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    • 30 May 2012 13:23, by South South

      Pif Paf,

      Are you out with your a little mind ? Someone from North Sudan need to help with this quote from Pif Paf "Lifting of the fuel subsidies will allow the goverment to better equip the SAF plus eliminate fuel smuggling just like how the black market has been eliminated." How can lifting fuel subsidies will eliminate fuel smuggling ? What a wicked person you are.

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    • 30 May 2012 14:11, by Jewish Ally

      Some MPs warned back then that the move is likely to spark a popular uprising given the economic hardships the public has been enduring since the country lost three-quarters of its daily oil output, and hence main source of hard currency revenues, with South Sudan’s secession last year.
      i guess the the uprising will be the worse you have ever heard in your life
      Haaaa ahaaaaa

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    • 30 May 2012 15:35, by True Blue

      Our economy has stagnated. The more we want to rob the resources from the South Sudan by force the more we sink. We need a new dispensation in Sudan. The NCP honey moon is over. Bashir and his Cronies must go!

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  • 30 May 2012 13:35, by Ayuiu Makuac Lam

    That is a begining of downfall the NCP regime. The removal of fuel subsidy can call general uprising in the country. And the result should led Bashir down after down simplly ICC can take him and sentence him with 80 or 50 years like Charlse Tarlor today.

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  • 30 May 2012 14:46, by Lang

    The best choice

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  • 30 May 2012 17:38, by Northern Sudanese

    It is funny the way South Sudanese care more about Sudan economy shrinking than their own economy collapsing XD

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    • 30 May 2012 18:21, by zulu

      North Sudanese,
      We justify our comments because it is a rebuttal against your low expectation that our economy is hurting because of oil. Just as oil is your concern, now we prove that being naive was perilouse and still is on your ubuquitous party. There is no foreign ploy but the stupidity of your gangs who are at the echelone of political control.

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      • 30 May 2012 19:22, by Northern Sudanese

        ’’ low expectation that our economy is hurting because of oil’’

        it seems like you still use your old language......man, inflation over 55% , poverty growing to 83% next year, 700,000 returnees, milions of people facing food insecurity, Lamu project wont succeed.....the natives of Lamu wont let this project go on, even if it does, it would take years to start production and you speak about Sudan??

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        • 30 May 2012 19:26, by Northern Sudanese

          ’’ low expectation that our economy is hurting because of oil’’

          YOU LOST 98% OF YOUR ECONOMY!!!!!You enjoy your Asylum but the people aren’t having a live like yours..........Unity state citizens are moving to the outskirts of Juba due to their incapability of affording the food prices......you have already over 4.7 MILION people FACING FOOD CRISIS...... and you still speak about Sudan economy???

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  • 30 May 2012 17:43, by Northern Sudanese

    i believe that this plan will likely result a negative impact on the nation as many people depend on cars........the government should may be increase the price to a 2.8 dollar a gallon, something easy to afford however, this isn’t a large threat because if you look at south sudan, it is 7 dollar a gallong and even them, the poor south sudanese can afford it.....

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    • 30 May 2012 20:17, by Dinkawarrior

      The stolen oil from South Sudan into Sudan hole is now on the way to market which is the good news but how long will Khartoum be continuing to steal our oil for their benefits? It is okay for the SPLA to shut down those pipelines on the border in order to prevent the thieving of the NCP (National Crimes Providers) of Khartoum.

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      • 30 May 2012 21:14, by Northern Sudanese

        ’’stolen oil’’ so that small amount of oil was gonna save your economy? it wasn’t even stolen, you expected us to let the oil flow for free?

        shutting down pipelines is for khartoum just a percentage of the economy, for south sudan, it is 98% of its economy.......

        ’’ It is okay for the SPLA to shut down those pipelines on the border’’ of course its good :).....letting 4.7 milion people starve XD!

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        • 31 May 2012 05:12, by Akook

          Northerner, its funny really how you people try to encourage youreslves by comparing ur econ with ours.

          The fact is we did not have economy until the last 8 months, 75% of us live outside cash economy even if a gallon costs $15, we don’t have as much cars to fill than you ppl do. Ok if our economy collapses, we can survive and we let yours collapse too and you will all die like rats in borehole

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          • 31 May 2012 05:20, by Akook

            SPLA is capable to fight wholeheartedly for a homeland without salaries unlike your bribed fake Arab SAF soldiers who won’t do for free.

            Kiir even if loses leadership, he can go to Awan Chan as respected statesman compare to your entire criminal cabinets awaiting deaths in the gallows or ICC Charmbers.. in the Hague. Kiir told Bashir recently that there is a luxurious ICC pretrial hotel ready 4

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            • 31 May 2012 07:57, by Northern Sudanese

              Akook

              are you sure lol? read that article of the 500 spla widows XD

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              • 31 May 2012 10:36, by Mapuor

                Dear Northern Sudanese
                The two countries will soon find themselves without even a penny.Dont just duel on SPLA.SPLA’s history is divest of money.Economists in both Sudan and South Sudan have already allerted both governments of the looming crises.I beleive your widows of Higlig(Panthou)FACE THE SAME CONDITIONS FACED BY SPLA WIDOWS

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