According to a statement from Sudan’s Finance Ministry, the removal of all subsidies for imported fuel in the country led to the doubling of the price of petrol and diesel in line with import costs, transportation, taxes, and profit margins.
Fuel subsidies cost Sudan $1 billion a year and benefited the middle and upper classes rather than those with lower incomes, the finance ministry said.
The price of petrol will rise from 150 Sudanese pounds ($0.35) per litre to 290 Sudanese pounds while diesel will now cost 285 pounds a litre from 125 pounds, according to the finance ministry.
The provision of direct subsidies to the agriculture, electricity, and transportation sectors “to compensate for the burden of rationalized fuel prices” would be studied, the statement added.
“After the liberalization of prices, Sudan’s remain the 6th cheapest out of 42 African countries,” as many countries impose high fuel taxes, the statement said.