Asian dating service near El Obeid Sudan

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The estimated full fuel subsidies in are about SDG billion, or While energy subsidies are huge and costly, they benefit mostly high-income households and neighbor countries. More broadly, a World Bank study concludes that energy subsidies disproportionately benefit the rich, because the top 20 percent of households receive more than eight times the fuel subsidy received by the bottom 40 percent, and on average, fuel expense makes up only 1. Moreover, cheaper fuel prices have motivated smuggling of fuels to neighbor countries. International experience shows that successful removal of energy subsidies has some common ingredients.

Fuel price increases have often led to widespread public protests in part due to lack of confidence in the ability of government to shift the savings from removal of subsidies to programs that would compensate the poor and middle class for the higher energy prices. An IMF paper which identified 28 country reform episodes found that 12 countries have successfully reduced subsidies, 11 were partially successful—often because of reversals or incomplete implementation and 5 were unsuccessful.

These country experiences suggest some ingredients are needed for a success reform as following:. Sudan has persistent large macroeconomic imbalances due to past mismanagement and lack of external investment and financing. The weak economic condition and the continued depreciation of the Sudanese currency would complicate energy subsidy reforms. On the other hand, the recent regime change has created a window of opportunity for fundamental reforms.

Therefore, energy subsidy reform should be included in a comprehensive economic reform package which should also tackle exchange rate reforms. The rather high poverty ratio and large gaps between domestic fuel prices and break-even prices in Sudan also means that removal of subsidies should be conditional of other key policy actions.

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Notably, an expanded social safety net and an extensive information and communication campaign need to be in place prior to subsidy reforms. The government should also reform the governance of the oil sector. Ndip A. Clements B. Coady S. Fabrizio S. Gupta T. Alleyne and C. Petrodar has facilities in the oil field of Melut Basin in South Sudan. According to the Oil Agreement, South Sudan would pay for use of these facilities.

Sudan implemented multiple exchange rates to serve different purposes. For example, government uses lower than the official exchange rate to import strategic goods, including fuel, medicine and wheat. Daily prices are tracked by Globalpetrolprices. In Sudan, the last domestic fuel prices increase was in end User Account. IMF eLibrary. Advanced search Help.

Kitts and Nevis St. Lucia St. Public Health Health Policy. Print Citation Alert off. Get Code Buy. Middle East and Central Asia Dept. A large body of literature and country analyses confirm that weak governance and corruption undermine economic growth, amplify income inequality and erode public trust in the institutions. According to international agencies and existing literature, Sudan has scored very poorly on compliance with rule of law best practices in the past.

Effective implementation of preventive measures is important; particularly in relation to politically exposed persons. Transparency on beneficial ownership of legal persons and arrangements to prevent their misuse for laundering the proceeds of corruption are necessary. Transparency, accountability, and comprehensive communication should be the backbone of governance and anti-corruption reforms in each sector. Rationalizing tax exemptions and phasing out tax holidays would strengthen governance while boosting fiscal revenues. Table 1. Energy Information Administration, and company websites.

Source: U. Figure 1. Sudan: Crude Oil Production and Exports. Sudapet is reportedly not active in oil exploration, but only manages revenues the government receives from the profit-sharing agreement PSA with foreign partners.

SPC used to be responsible for import and distribution of fuels, but it was dissolved in March by order of the Prime Minister with no reasons published, and all assets and employees were transferred to the Ministry of Energy and Mining MOEM. KRC also operates on non-commercial basis: it only processes crude oil delivered by the government and hands the final products back to the government.

As a result, these SOEs have no incentives to further invest to improve production or reduce costs. The MOEM is heavily involved in the oil business. It regulates the oil sector and also manages the financial operations of SOEs in the sector. It also manages the above-mentioned SOEs, including their production, imports and sales of fuel products to distributers in the retail market, and pays taxes to the government. Rising energy subsidies have dried up government resources and triggered a vicious cycle of inflation and exchange rate depreciation in the economy.

With limited access to external financing and the limited domestic securities market, monetization by the Central Bank has become the principal channel for financing government deficits. Moreover, the energy subsidies have forced to central bank to engage in a variety of quasi-fiscal operations to acquire forex to support government import of strategic goods-including fuel, medicine, and wheat 5 These actions have undermined central bank independence and led to very rapid reserve money growth, high inflation, and currency depreciation Figure 2.

Figure 2. Figure 3.

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Figure 4. Figure 5. Sudan: Gasoline and Diesel Consumption Changes. These country experiences suggest some ingredients are needed for a success reform as following: A comprehensive energy sector reform plan with clear long-term objectives incorporating an analysis of the impact of reforms; Transparent and extensive communication and consultation with stakeholders; Phasing-in price increases over time; Improving the efficiency of state-owned enterprises to reduce producer subsidies; Measures to protect the poor through targeted cash or near-cash transfer, or, if this option is not feasible, a focus on existing targeted programs that can be expended quickly; and Institutional reforms that depoliticize energy pricing, such as the introduction of automatic pricing mechanisms.

References Ndip A. Clements , B.