Tuesday, October 6, 2026

Sudan Tribune

Plural news and views on Sudan

Sudanese oil firms urge al-Burhan to open fuel market, cite $7 million margins

People wait to get fuel for their vehicles at a petrol station in Khartoum, Reuters file photo.

People wait to get fuel for their vehicles at a petrol station in Khartoum, Reuters file photo.

October 6, 2026 (KHARTOUM) – A group of 24 Sudanese petroleum import and distribution companies has urged military leader Abdel Fattah al-Burhan to overhaul fuel import rules and end policies that restrict shipments to a handful of firms.

The appeal comes amid renewed volatility in Sudan’s energy market, where war has deepened reliance on imports following the shutdown of the Khartoum refinery, which previously supplied about 70% of domestic fuel needs.

In mid-June, the Central Bank of Sudan required fuel importers to deposit 200 grams of gold per shipment, an effort aimed at curbing import fraud and conserving scarce foreign currency reserves.

In a petition sent to Burhan, the head of the Transitional Sovereignty Council, the firms said the regulations stifle competition, disrupt supplies, and threaten critical sectors including agriculture, mining, manufacturing, and transport.

Confining imports to a small group of companies has allowed profit margins to widen to roughly $7 million per cargo, the memo said.

The group noted a sharp disparity between the preferential import exchange rate of about 5,500 Sudanese pounds per U.S. dollar and the parallel market rate of around 8,300 pounds.

The companies warned that mounting operational costs would curb domestic output and exports, undermining the country’s ability to generate foreign currency required for basic goods and reconstruction.

The signatories asked authorities to open fuel imports to all qualified local firms under transparent criteria and allow them to finance purchases using their own capital to relieve pressure on central bank reserves.

They also called for replacing the gold deposit rule with flexible financial guarantees, and for introducing a transparent mechanism to allocate fuel quotas among distributors.

The group proposed establishing a joint committee comprising the central bank, relevant ministries, and industry representatives under Burhan’s supervision to draw up recommendations within a set timeframe.

The companies stressed they were not seeking exclusive privileges, but rather market access that would boost supply and lower prices for consumers.

Signatories to the memo include Libya Oil, Oil Energy, QAPCO Sudan, El-Nahla Petroleum, Sudagas, Petroline International, and United Petroleum, along with 17 other domestic distributors.

The appeal coincides with severe fuel shortages across Khartoum and several states in recent weeks, leaving vehicles queueing outside filling stations and disrupting transport.

The shortages have compounded economic hardship for Sudanese as the pound has weakened past 8,000 per dollar on the parallel market, driving up the cost of basic commodities and services.