Sudan says cutting fuel subsidies awaits further drop in global oil prices

December 17, 2015 (KHARTOUM) – The Sudanese Ministry of Finance announced on Thursday that the government will not initiate a new round of subsidy cuts on fuel until they see further drops in global oil prices.

Oil prices have fell from their three-digit figures to around $36 per barrel which offered huge reprieve to energy importers such as Sudan.

The state minister of Finance and Economic Planning Abdel-Rahman Dirar affirmed that the government will continue to subsidize fuel to meet demands of the local market but that in the event of more decline in oil prices it will be scrapped entirely.

He added that when the government is assured that the private sector has the ability to provide fuel to the consumer at reasonable prices, they will liberalize the price of fuel.

Dirar said that money saved from oil prices drop will be used to finance productive sectors and allocate another part to low-income families and social programs.

The official stated that a 20% increase in salaries of government employees in 2016 will be paid for by savings from lower oil prices.

Last week, the Minister of Finance was reportedly quoted as announcing fresh subsidy cuts in the 2016 budget year. But the ministry later denied its intention to do so.

The Sudanese cabinet approved the draft 2016 budget in a five hour session chaired by President Omer al-Bashir.

Scores have been killed in several Sudanese cities in protests that erupted in September 2013 after the government partially lifted fuel subsidies.

(ST)