Opinion

Increasing fuel price would contribute to inflation

The report that came out recently by the Minister of Finance and planning asking NGO’s to import their own fuel is a very good move. Perhaps the economic plan of Minister Stephen Dhieu who is in charge of our economy is to reduce the burden put on his ministry in relation to fuel subsidies and so forth. Most of the NGO’s can afford to bring their own fuel because of their economic capability.

I have no any objection on that. It is absolutely fine and would continue to be okay if it remains there. What I will criticize is if the lifting of fuel subsidies lingers from the side of the NGO’s to the side of the public. I will not wait for rumors of lifting on the side of the public to occur before I put my view point. I am saying so because recently one of the economic think-tank in the country told me that there is a probability of increment of the fuel price. But he has said he is not very sure about the percentage which will be put on top of the current price. Previously there was a plan to increase the price of fuel from the figure of 22 SSP to something more. But with a help of the parliament and the leader of the country President Salva Kiir, that plan had not materialized simply because the government injected some money to support the subsidies.  The reading of the 2017/2018 national budget presented by Stephen Dhieu, will produce fear of stopping financing fuel subsidies. It will leave the matter in limbo due to lack of enough money.

Lack of money is a concern since war broke out between SPLM/IO led by Dr. Riek Machar and the government of President Salva Kiir in 2013.

Currently the price of fuel in the petrol stations is 22 South Sudanese Pounds per a litre. Sometimes back, one of the writers said South Sudan is selling the fuel cheaper than the rest of the world.

Actually the government has been paying some money to cover the expenditure or cost of subsidies of fuel being imported under the responsibility of the Nilepet, the national operating company. In most of the countries in Africa the price of fuel per a litre is equivalent to 1 United States (US) dollar. Ours is less by more than fifty cent of a dollar. In mid-2011 up late 2015 the price of fuel per a litre in the country was more than a dollar. At that time a litre of fuel was 6 SSP. But the economy

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