The Ministry of Finance and Economic Planning on Tuesday, June 8, issued a decision to cancel all fuel prices (petrol and gasoline), as part of the economic reform policy that will allow Sudan to deal with international financial institutions. Where petrol sets at 290 SDG per Liter, while gasoline sets at 285 SDG per Liter.
The Minister of Finance and Economic Planning, Dr Gebriel Ibrahim, held a joint press conference alongside him, the Ministry of Culture and Information, and the Minister of Energy, Jaden Ali Obeid. The two ministers reviewed the decision and its economic consequences for the state and the citizen.
"Subsidy is a wrong policy because it does not treat people fairly. Mostly, those who own luxury cars and huge possibilities are the beneficiaries of fuel subsidy, but the poor citizen who does not own a car needs the money of this subsidy to find it in education and health" Said, Dr Gebriel Ibrahim.
He also added that subsidizing fuel and many commodities, eventually will lead to printing money and a deficit in the budget, and this will lead to a continuous and endless rise in prices. He also described that these reforms are difficult but necessary and that any government will resort to these economic reforms.
Meanwhile, Mr Jaden, minister of energy, said that the country pays almost 3 billion dollars for fuel per year While the country suffers from oil smuggling " this decision will stop the smuggling of oil to neighbouring countries, and therefore the circulating figures in the rate of consumption may decrease to a significant percentage" he said.
Also added "Our design capacity of the Khartoum refinery is 100,000 barrels per day, but now our capacity is less than 60, so the difference is that we import from abroad and our product itself is sold at half its cost, and this is a discount on the development that is supposed to take place in the fields," he said.
However, frustration is seen in the streets among people who can't keep up with high prices and high cost of living. The country suffers from hyperinflation and the black market's control of foreign currencies especially the "dollar", which causes the local currency to depreciate.
Many people resort to converting currency through unofficial bodies because of the difference. Despite the liberalization of the exchange rate, banks are struggling to keep pace with the black market rate and provide appropriate services that tempt people.
Not to mention the chaos that has been a constant activity in the country, and recently increased, embodied in the looting of others' property, killing and kidnapping.
Despite the failure of security forces to resolve this chaos, the situation has become like a retreat from their side. Any escalation from other political parties, particularly the opposition, has become another concern, where all the activities of security forces have become denounced and unacceptable, even if they are to deter unruly groups.
On the other hand, there is real resentment towards the Minister of the Interior, who remains silent amid these outbursts that have badly affected many people.
But these scenarios are not new to the country. Many people think that Sudan has been in the same cycle since independence. But this time may be different, as many attempts are being made to find a new way out of the impasse, despite the crises in the country.
Reasons for this cycle could be due to the weak structure of the parties and their vision of reform. The goal of reaching power has become more fundamental than introducing an economic and political reform program that pulls the country from the bottom but they don't stand alone in this. The constant interference of the military in power and its acquisition of many institutions that generate large returns to the state poses another threat.
We will not be able to see a state without an army or security systems that protect the state and expand security and law because you will find it an unequal equation. However, these scenarios define the term " politics" in Africa. You find constant military coups, economic crises, rebels, armed militias..etc.
Transition period known for its obstacles and challenges, especially in poor countries. But How much will people pay to reach a point where they earn their rights of living, freedom, safe and economically stable country? Patience is one of them!.
RA rocks
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