Sudan will not lift wheat, furnace oil, cooking gas subsidies this year

Sudan will not lift subsidies this year on wheat, cooking gas or furnace oil, which is used to produce electricity, finance minister Jibril Ibrahim said on Wednesday, a day after subsidies on gasoline and diesel were fully lifted.

Ibrahim said the government is committed to removing the so-called customs exchange rate, used to determine import duties on a range of goods, but is studying tariff levels to ensure that consumer prices are not affected.

Sudan is implementing a raft of IMF-monitored reforms, including a currency devaluation, in hopes of alleviating a protracted economic crisis and attracting foreign financing.

Ibrahim also said he was studying wide-ranging reforms for the banking system.

Sudan produced 400,000 tonnes of wheat in the past season which was disappointing, Jibril said. This accounted for a quarter of the country’s needs of 1.6 million tonnes.