Sudan's fuel crisis drives transport costs up by 40% as incomes stagnate

Fuel scarcity in Sudan has forced a 40% increase in intercity bus fares and a 30% rise in minibus fares, raising the cost of living for millions of residents.

The conflict between the Sudanese Armed Forces and the Rapid Support Forces began on April 15, 2023. Attacks on the Balila oil field disrupted supplies to the Khartoum refinery, which previously met about 60% of national demand for petrol and liquefied petroleum gas. The Ministry of Energy and Petroleum estimated war-related losses at $20 billion last year. The United Nations Development Programme reported that average incomes have fallen to levels last seen in the 1990s.

Drivers in Port Sudan now face long waits for fuel. Azhari Mohamed, a 60-year-old minibus driver, works seven round trips daily from 6am to 9pm. He burns 11 litres of petrol daily, costing approximately 105,000 Sudanese pounds. Because fuel is scarce, he works two days and spends a third waiting in line. Queues can last more than five hours. After paying for fuel, he earns about 50,000 pounds per day. He stated, "We just need fuel to be available so we can work."

Passengers face higher costs for daily commutes. Aziza Ibrahim, a 38-year-old cleaner in Port Sudan, reduced her work to three days a week to manage travel expenses. Her daily round trip now costs 11,000 pounds. This amount consumes nearly half of her 400,000-pound monthly salary. She sometimes borrows money to reach work and repays the debt when paid. The Sudan's Transport Chambers Union implemented the new fare structure this month.

Traders are passing higher fuel costs to consumers. Ahmed al-Haj, a skincare product trader in Omdurman, said moving a tonne of goods costs 30 to 50 percent more due to higher diesel and petrol prices. Local delivery fees in Omdurman have doubled from 5,000 pounds to between 10,000 and 12,000 pounds. Transport workers are making fewer trips, causing goods to accumulate at traders' premises.

Economic analyst Sidi Ohaj noted that government import rules require depositing 200kg of gold in the Central Bank and owning fuel storage facilities. Some importers left the market due to these requirements. He said this reduced supply relative to demand. Drone attacks on infrastructure and the war between the United States and Iran are also disrupting global energy markets. The government should urgently ease import procedures, Ohaj added.

The next scheduled step is for the government to adjust import procedures. The current shortage is driven by reduced domestic output and reliance on imports during a global fuel crisis.