17 Jun 2019


Government Lifts Fuel Subsidy

The Cabinet has directed the Minister of Finance and planning to scrap-off fuel subsidy provided to Nilepet for importation of fuel at subsidized prices for domestic consumption.

By Ojwe Lumara

JUBA, 13 May 2018 [Gurtong]-
Addressing journalists on Friday after the weekly Council of Ministers meeting in Juba, the deputy Minister of Information, Lily Albino Akol Akol, said the Cabinet agreed to remove the fuel subsidy.

“The President and the Council of Ministers noticed and acknowledged that the citizens of South Sudan are indeed suffering, the fuel subsidy meant to actually alleviate the economic conditions of our people not happening, so it will be in the best interest of our people that these fuel subsidies are lifted and then the prices of the fuel in the market will then regulate themselves,” MS Lily said.

This was after the Minister of Finance and Planning presented the 2018-2019 fiscal resource envelop for the budget preparation, where he proposed SSP 79 billion out of which SSP 78 billion will be funded by government, and 1.1 billion by donors.

He also tabled a memo for removal of the fuel subsidy to avail money for other government expenditures.

“Lifting fuel subsidy will start immediately. The ministers of finance and petroleum as well as Nilepet have been directed to start lifting fuel subsidies with immediate effect,” she added, referring to the state petroleum company,” she added.

The deputy information minister said the money from the subsidy will be used for paying of civil servants.

According to 2017/2018 budget estimates, Nilepet was allocated $183 million to import subsidized fuel for domestic consumption.

Former finance minister Stephen Dhieu Dau proposed that the subsidies be lifted to save the money for other government expenditures including payment of salaries.

But the parliament did not lift the subsidy, instead demanding for a study on the effects it would have on the citizens.


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