SUDAN NEWS ALERT: Reuters - Sudan ends subsidies for gasoline and diesel, raises prices

8/6/2021: Reuters - Sudan ends subsidies for gasoline and diesel, raises prices

Reuters report that Sudan, which “has been implementing aggressive IMF-monitored reforms” - fully liberalised gasoline and diesel prices. The finance ministry said that prices would be determined by the costs of import as well as transportation, taxes, and profit margins.

The price of gasoline will rise from 150 Sudanese pounds ($0.35) per litre to 290 pounds, while the price of diesel will rise to 285 pounds per litre from 125 pounds, the finance ministry said, adding that fuel subsidies cost Sudan $1 billion a year and benefited the middle and upper classes rather than those with lower incomes.

“After the liberalization of prices, Sudan’s remain the 6th cheapest out of 42 African countries,” as many countries impose high fuel taxes, the ministry said.

Opponents of the reforms say their effects fall disproportionately on the poor.