![sudan_fuel_subsidy_reform.jpg](/sites/default/files/styles/featured_box_portrait_mobile/public/publication/sudan_fuel_subsidy_reform.jpg?h=a5519d5a&itok=4RzODNMF)
Recent Developments in Sudan's Fuel Subsidy Reform Process
In September 2013 Sudan introduced the third and most dramatic in a series of fuel subsidy cuts, raising prices of petrol, diesel and liquefied petroleum gas (LPG) by 65 to 75 per cent each.
This came in a context of high economic pressure, following the loss of oil revenue from South Sudan after July 2011. That resulted in significant structural imbalances in the fiscal and current accounts, sending the black market exchange rate out of control and requiring the Central Bank to print money to finance excessive government spending.
The overall pricing system was not changed by the subsidy cuts, and no explicit linkage to the market was introduced, meaning that further reforms are likely to be required. However, that may be politically difficult, given the highly negative public reaction (with the worst riots seen in the capital city for at least two decades) and the lack of support for the reforms among the media and other political forces—including sections of the ruling party itself. Internal disunity appears to have been one of the main factors preventing the government from launching an effective communications strategy and broader consultations.
You might also be interested in
The Indonesia Cooking Diaries Study
This study evaluates the feasibility and implications of switching from cooking with LPG to induction stoves in Indonesian households.
Report Calls on Fossil Fuel Producers to Map “Transition Away” in NDCs
With governments due to submit the next generation of NDCs in 2025 a new report identifies five elements countries should include to reflect the outcome of the global stocktake.
Ending Canadian Domestic Public Financing for Fossil Fuels
This report examines the scope of public financing for the fossil fuel sector in Canada and makes recommendations for Canada's forthcoming policy to eliminate this financing.
New report: Oil and gas phase-out primer
World leaders agreed to transition away from fossil fuels at COP 28, in a new report IISD experts break down what next steps are needed to put this commitment into action.