Bloomberg News

Sudan Raises Transport Costs 35% Amid Plan to Cut Fuel Subsidy

June 13, 2012

Sudan raised public-transport prices by as much as 35 percent in Khartoum state amid plans by the government to lift subsidies on gasoline and fuel oil, the Bus Drivers Association said.

“The new measure entails no further increase will be applied if the government decides to remove oil subsidies,” Diab Qesm el-Sayed Awad said by phone from Khartoum, the capital, today.

Sudan’s Finance Ministry is expected to announce this week steps to increase revenue and help narrow a $2.4 billion budget deficit caused by the loss of oil income since the secession of South Sudan. The measures may include lifting fuel subsidies, raising taxes and customs duties for luxury products, and increasing fees for travellers and air tickets.

Sudan lost three-quarters of the formerly united country’s oil production when South Sudan gained independence in July. Negotiations since then have failed to yield an agreement on how much the landlocked south should pay to use a pipeline and processing facilities in Sudan.

Sudanese inflation accelerated to 30.4 percent in May from 28.6 percent in April, the country’s statistics agency said on June 6.

To contact the reporter on this story: Salma El Wardany in Khartoum via Nairobi at pmrichardson@bloomberg.net.

To contact the editor responsible for this story: Antony Sguazzin at asguazzin@bloomberg.net.


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