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S. Sudan’s national oil company hikes fuel prices for hotels

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February 13, 2017 (JUBA) - South Sudan has increased rates at which hotels purchased fuel at filling stations, sparking speculations it could push prices for hotel rooms.

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A worker at the power plant of an oil processing facility in South Sudan’s Unity state on 22 April 2012 (Photo: Reuters)

The head the NilePet, a state-owned entity, said fuel charges for hotels were raised, but charges for water suppliers and the general public remained.

“You know that NilePet supplies about 30% of market, which is unsustainable. It is practicable. The government is overstretched with priorities and therefore is there a need to plan better and to operate within the available resources until the economy is okay”, Machar Ader Achiek told Sudan Tribune Monday.

For months, South Sudanese have been in queues waiting to get fuel others, while others are forced to buy fuel on the black market, sometimes paying triple the price.

Achiek said 40% of the fuel has been subsidized, adding that fuel was currently sold at 22 SSP instead of 37 SSP. The official explained that his institution has raised 60 SSP.

Last week, South Sudanese lawmakers expressed mixed reactions about removal of fuel subsidy, with some welcoming the decision and others saying it will increase the prices.

Nilepet procures fuel outside the country and sells a litter once it is imported at the cost of 22 pounds at the petrol filling stations. But citizens have always complained of lack of fuel at the designated fuel stations, even when they stay in line for hours.

There are claims that several senior government officials and military officers use their influence and privileges to obtain fuel from Nilepet and allegedly sends it to the black market where it is sold at prices higher than the official charges.

Since its independence, South Sudan has relied on oil for all income—a situation that has significantly compounded ongoing political and economic instability due to fall in crude oil prices.

According to South Sudanese officials, production in the past reached as high as 350,000 bpd but fell after a dispute with Sudan over fees for pumping South Sudan’s crude through Sudan’s export pipeline, which led Juba to halt production in 2012.

South Sudan got the lion’s share of the oil when it split from Sudan in 2011, but it’s only export route is through Sudan, giving Khartoum leverage and leading to ongoing pricing disputes

(ST)

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  • 14 February 06:36, by Eastern

    Has Kiir just realised the futility of subsidies? How did Kiir expect to wag a costly war and pay subsidies on essential commodities and his regime will remain afloat? Will Kiir’s regime officials pay their hotel bills promptly? If not the Ethiopians and Eritreans will close their businesses soon!!!!!

    repondre message

  • 14 February 06:38, by Eastern

    The Ethiopian government was only siding with Kiir’s regime so as to protect its business community in South Sudan. Once this groups’ interest is no longer there, Kiir would have lept from the frying pan into the fire!!!!

    repondre message

    • 14 February 07:29, by South South

      Eastern,

      Kiir is staying in power as long as majority of people in South Sudan are with him. Prepare yourself to live with that. In Uganda a liter of fuel is 80ssp, in South Sudan a liter of fuel is 22ssp. Are hotels in Uganda closed because of fuel? No. Are hotel prices in Uganda higher than South Sudan, No. South Sudan is South Sudan and will make its decisions for benefits of its citizens.

      repondre message

      • 14 February 08:01, by Eastern

        South Sudan,

        Kiir’s majority will go with him. The rightful country people will regain their country...

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        • 14 February 08:08, by South South

          Eastern,

          The rightful people of South Sudan are those who support their country to develop. They are the one who fought war for 21 years while those who are now crying like babies were hiding and collaborated with enemies . Get rid of majority people who support South Sudan government is like trying to move a big mountain with your hands. I hope you get my point.

          repondre message

          • 14 February 13:38, by nuer food lovers

            1-Nhail Deng Nhail, Pieng Deng kuol, Majak Agoot, Pagan Amum, Oyay Deng Ajak, Elias waya, Thomas cirilo, Chol Thon Balok, Athor Deng dut, Lual Deng wol, John Garang, James koang chuol Ranley , James Hoth mai, John koang Nyuon and me dhongbang...made south sudan what we are prouding today and being destroy by malong,kiir, malual madut, Aldo Ajou,Martin Elia Lomuro, Makuei Lueth, Taban deng Gai>>>>>

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            • 14 February 13:45, by nuer food lovers

              kiir will be remeber in the history of south sudan..as the worst triator who oversee the destruction and disintegration of south sudan.why is it always very bitter and accuse the person that made his decision to leave government brand as corrupt?

              repondre message

  • 14 February 06:42, by Akuma

    Nile Pet made fuel has commodity like US Dollar and it couldn’t spare South Sudan economy otherwise it better to stop Nile pet from delivering services to citizens. Nile Pet is hub of corruption practices in the country.

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