August 14, 2022

Dubai Week

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Sudan raises fuel prices for fourth time in 3 months

Sudan raises fuel prices for fourth time in 3 months

According to the increase in Hodeidah, a liter of gasoline is distributed to consumers for 760 pounds; That means 748 pounds is about 1.4 dollars per liter of petrol.

The new increase comes amid major economic problems the country has experienced, which has led to a significant decline in the local currency’s exchange rate, with one dollar trading at 565 pounds on the official market.

Observers expect the fresh increase in fuel prices to cause further suffering in the country, where more than 60 percent of the population lives below the poverty line. Fuel prices are directly reflected in the cost of production and transportation, leading to a further rise in prices of basic commodities.

Muhammad Sheikhoun, an economics professor at Sudanese universities, told Sky News Arabia that the move would lead to greater fluctuations in commodity prices and raise already high inflation rates, which have recently exceeded 300 percent.

Shaikhun saw it as a loss Sudan Further strengthening expectations are the lack of communication channels with the international financial community, a decline in manufacturing, markets dependent on imports for more than 90 percent of their needs, and a significant decline in remittances from abroad. A decline in macroeconomic indicators.

Mahmoud Omar, whose monthly salary is estimated at $150, said the new increase would be devastating for low-income earners. He told Sky News Arabia that the increase in fuel prices would be followed by a significant increase in the prices of basic goods and services.

and suffer Sudan economy From the major crises that followed the terrible deterioration that affected all sectors due to widespread corruption during the rule of Omar al-Bashir, which lasted from 1989 until his overthrow in the popular revolution in April 2019. .

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In the period following the fall of the Bashir regime in April 2019, Sudan began to open up to the international community after removing its name from the terror list; obtaining pledges to waive most of the $66 billion and estimated $3 billion in endowments; However, the international community suspended all of these pledges following the actions taken by army chief Abdul Fattah al-Burhan on 25 October.