Recent Developments in Sudan’s Fuel Subsidy Reform Process

The report examines Sudan's fuel subsidy reform process, highlighting the September 2013 price hikes for petrol, diesel, and LPG. It analyzes the economic drivers, such as the loss of oil revenue following South Sudan's secession, and the subsequent social unrest and inflationary pressures. The document concludes with lessons learned regarding pricing systems, mitigation strategies, and the necessity of public support.

• In September 2013, Sudan implemented significant fuel price increases: petrol rose by 68% (from SDG12.5 to SDG21/gallon), diesel by 75% (from SDG8 to SDG14/gallon), and LPG by two-thirds (from SDG15 to SDG25 per 12.5kg cylinder).
• The reforms were driven by severe economic pressure following the July 2011 secession of South Sudan, which resulted in the loss of approximately 75% of oil production, accounting for 50% of the government budget and 90% of exports.
• The September 2013 cuts triggered violent riots in Khartoum and other areas, leading to an estimated 600 to 800 arrests and a government-acknowledged death toll of 84 people, though advocacy groups claim over 200 deaths.
• Compensation measures were deemed insufficient and poorly targeted; a one-off payment of SDG150 for 500,000 poor households represented only about 1% of the estimated annual fiscal savings from the subsidy reduction.
• The subsidy cuts contributed to a sharp rise in consumer price inflation, which climbed back above 40% year-on-year in October and November 2013, driven largely by increased transportation costs and exchange rate depreciation.
• Despite the price hikes, the fundamental pricing system remains unchanged; prices are still set by the government-owned Sudanese Petroleum Corporation (SPC) rather than the market, and significant subsidies still exist.

APA

James, L. M. (2014). Recent Developments in Sudan’s Fuel Subsidy Reform Process. International Institute for Sustainable Development. https://www.iisd.org/gsi/sites/default/files/ffs_sudan_lessons_learned_jan_2014.pdf

Chicago

James, Laura M. Recent Developments in Sudan’s Fuel Subsidy Reform Process. International Institute for Sustainable Development, 2014. https://www.iisd.org/gsi/sites/default/files/ffs_sudan_lessons_learned_jan_2014.pdf.

Wikipedia

{{cite report |last1=James |first1=Laura M. |title=Recent Developments in Sudan’s Fuel Subsidy Reform Process |publisher=International Institute for Sustainable Development |date=January 2014 |url=https://www.iisd.org/gsi/sites/default/files/ffs_sudan_lessons_learned_jan_2014.pdf |access-date=23 October 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{james2014recent, author = {James, Laura M.}, title = {{Recent Developments in Sudan’s Fuel Subsidy Reform Process}}, institution = {International Institute for Sustainable Development}, year = {2014}, month = jan, url = {https://www.iisd.org/gsi/sites/default/files/ffs_sudan_lessons_learned_jan_2014.pdf}, urldate = {2026-10-23}, note = {Indexed by Climate Insights Directory} }