It seems that the fuel prices in Sudan for the month of May 2023 will not differ from the prices of last April, with the continuation of the clashes that disrupt the work of some sectors.
Sources at the Ministry of Energy and Oil in Khartoum said, in exclusive statements to the specialized energy platform, today, Wednesday, May 3 (2023), that gasoline prices will not change during the current month, with the continuation of battles between the Sudanese army and the Rapid Support Forces in the country.
The Khartoum government had raised fuel prices in Sudan during the past month, as the price of gasoline moved up, while the price of diesel decreased, as part of the decision to move prices, within the ministry’s policy for the monthly review of fuel prices.
Gasoline prices in Sudan
Sources revealed, in exclusive statements to the specialized energy platform, that the Khartoum government will continue to implement the fuel prices in Sudan announced in April, which included raising gasoline prices by about 68 Sudanese pounds ($0.11) per liter, in exchange for reducing the price of diesel by 18 pounds. Sudanese ($0.030).
The Sudanese Ministry of Energy and Oil had announced the movement of gasoline prices last month, as part of its policy for the monthly review of fuel prices, to match the international prices of petroleum products, a review that takes into account global oil prices, as well as the cost of transportation, production, distribution and profits.
It is scheduled, according to the sources, that the fuel prices announced in early April will continue to work, due to the continuing clashes in Sudan, which have so far resulted in the death of hundreds of citizens, in addition to the injury of tens of thousands.
And the fuel prices in Sudan – which were approved a month ago, and are scheduled to continue to be implemented during the current month of May 2023 – are as follows:
- The price of a liter of gasoline is 588 Egyptian pounds ($0.98).
- The price of a liter of gasoline (diesel) is 582 pounds ($0.97).
Fuel prices in Sudan for the month of April 2023 also included Khartoum state fees of 8 pounds per liter, which are fees that are not expected to be modified or changed until a new decision on prices is taken by the Ministry of Energy and Oil.
It is noteworthy that the price of the state of Khartoum, in relation to the prices of gasoline and diesel in the country, is a reference for all states of Sudan, according to the information monitored by the specialized energy platform.
Impact of battles in Sudan
Oil production in Sudan is estimated at about 60 thousand barrels per day, as the African country is the smallest producer of the OPEC + alliance, while the production of the newly born South Sudan is about 100 thousand barrels per day, according to information seen by the specialized energy platform.
The following graph, prepared by the specialized energy platform, indicates the volume of oil production in Sudan until 2021:
And with the escalation of clashes in Sudan, the energy sector there has become a threat, especially with the growing fears of a civil war among the population of the country, which is suffering economically and politically, after the events that called for the army to intervene to control matters and control the country.
The battles affect the work of a number of sectors, which resulted in the postponement of the announcement of fuel prices in Sudan during the current month, in light of the ongoing fighting between the commander of the armed forces and the de facto president of the country, Major General Abdel Fattah al-Burhan, and his deputy, Lieutenant General Muhammad Hamdan Dagalo, who leads the Rapid Support Forces.
It is noteworthy that the global oil markets are awaiting the repercussions of the ongoing power struggle in Sudan, although reports from Khartoum indicate that the infrastructure for oil production and refining has not been affected so far, since the outbreak of fighting on April 15th.
The head of the Africa Program at the Chatham House Institute, Alex Vines, had indicated that Sudanese oil exports through the main pipeline may be affected with the continuation of the battles, which is one of the reasons that prompted South Sudan to mediate a solution to the crisis, according to statements quoted by the “S&” platform. B Global Commodity Insights.
Fuel pricing in Sudan
The policy of the Ministry of Energy and Oil includes a monthly review of fuel prices in Sudan according to international prices, whether for oil or derivatives, and the cost of fuel production locally, according to information seen by the specialized energy platform.
The Sudanese Ministry of Energy had previously announced that the pricing at which Khartoum State would operate would be a reference for all Sudanese states, pointing out that fuel prices are determined according to several bases, after a detailed study of each factor separately.
It is noteworthy that determining fuel prices in Sudan, after the decision to cancel subsidies, is subject to the import cost, which ranges between 71% and 75% of fuel prices.
To the prices are added the cost of transportation, port fees and value-added tax, as well as the profit margin of the distribution companies, as these items together constitute about 25-29% of the selling price to the consumer.
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