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Sudan Tribune

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S. Sudan quietly removes fuel subsidies over hard currency

December 2, 2017 (JUBA) – South Sudan has quietly removed subsidies on fuel, a move many government officials attributed to the scarcity of hard currencies, which had made it difficult to afford subsidies in country.

People queue at a fuel station in South Sudan's capital, Juba on 18 October 2014 (ST)
People queue at a fuel station in South Sudan’s capital, Juba on 18 October 2014 (ST)
A senior official at the government-run national oil company told Sudan Tribune on Saturday that they were now operating under a difficult situation after failing to procure more fuel for subsidised sale.

“We are operating under a difficult situation. It is an extremely confused environment. This is the reason people like us in the management finds it hard to utter a word in the public because we have no message to tell the public, otherwise we will be forced to eat our own words which is unethical and someone like me would never accept to tell a lie”, said the official, who preferred anonymity.

The office of the president, according to the official, directed the ministry of finance to stop subsidizing fuel through Nilepet because resources had reached a critical point in decision-making process.

“You know the level the current situation has reached. It is pathetic. The civil servants have gone for close to a year now without being paid because there is actually no money in the treasury. Whatever that comes from non-oil and oil revenues goes to security and peace mobilization efforts,” further explained the top level official.

“This is the true situation in which the country operates”, he added.

Sudan Tribune understands that because of the current situation in the country, Nilepet has reached a difficult point at which it is not able to procure and supply affordable fuel to the public due to stoppage of subsidy. The latest development has left drivers stranded at Nilepet fuel stations in the capital, Juba.

The developments at the national oil company comes in the wake of the halt in issuing passports and national identification cards by the directorate of nationality, passport and immigration after the young nation failed pay the annual fee it owed German-based firm contracted to do the work.

(ST)

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