South Sudan unveils plan to remove fuel subsidy

July 12, 2017 (JUBA)- South Sudan has announced plans to remove a fuel subsidy; sparking fear such move could increase prices of basic commodities in an economic crisis caused by the unabated conflict.

Finance Minister Stephen Dhieu Dau said removing fuel subsidy would allow the government to use what it would save from the cut to paying salaries of the civil servants on time.

“We need to seriously consider reducing or eliminating the fuel price subsidy managed by Nilepet – this is the single most viable option for increasing resources for Government spending in 2017-18.

If we eliminate the fuel price subsidy, we will be in a position to pay salaries on time, something we have struggled to do this year,” said Minister Dau.

The Africa’s youngest nation is also experiencing a severe fuel shortage, with consumers queuing for hours outside fuel stations and often paying way over the new price for black-market products.

The minister told reporters on Wednesday that it was time to take painful decision to salvage the situation instead of burying heads in the sand hoping for miracles to fall from the sky.

“There can never be miracles to the current situation. It requires political will and the decision of the leadership to stand behind current reforms. We share the pains of the current situation with our citizens but the inherited difficulties of the past and the challenges of current times imply that we must take difficult decisions on these sorts of critical national issues. We cannot just sit down and watch the citizens wail haplessly. That is the best way to handle the situation. Something has to be done to alleviate this suffering,” he appealed.

Observers say the cost of fuel will rise from 22 South Sudanese pound per litre if the subsidy is removed after the budget is approved by parliament after it has been approved by the council of ministers.

(ST)