Sudanese MP wary about endorsing move to lift fuel subsidies
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June 28, 2013, (KHARTOUM) - A key member of Sudan’s national assembly
said that they have yet to receive official document on a possible
decision to lift fuel subsidies and warned that critical economic
sectors would be affected negatively by such a decision.
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Sudan National Assembly
MP Babiker Mohamed Tom, a member of the parliamentary subcommittee,
told the pro-government Ashorooq TV that phasing out the subsidies
would negatively impact more industries and the economy as a whole.
Earlier this month, Sudan’s minister of finance Ali Mahmoud
Abdel-Rasool urged the parliament to authorize gradual lifting of
subsidies as a solution to curb inflation rates.
Last week, an informed source told Sudan Tribune that the Shura
(consultative) council of the ruling National Congress Party (NCP)
endorsed a proposal to further reduce fuel subsidies.
President Omer Hassan al-Bashir hinted to the move in his speech
before the council saying that subsidies on fuel and electricity
benefit the rich for the most part.
"Any family with more than a single vehicle gets more subsidies than
the salary of the Deputy Minister," Bashir said.
MP Tom pointed out that such a move would increase the cost of
production and makes Sudan’s exports less competitive in the global
market and will also raise the US dollar exchange rate and inflation.
He further added that the government should instead work on
controlling the exchange rate.
The lawmaker called on the government to prepare a thorough study on
the decision prior to implementing it, demanding more cuts in
government spending and boosting support for the productive sectors.
Following the independence of South Sudan in July 2011, Khartoum was
forced to introduce a contractionary budget that saw the partial
lifting of fuel and food subsidies which triggered rare but small
demonstrations across the country.
The government defended the measures saying that the country can no
longer afford to pay for these subsidies after losing 75% of t
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