Sudan Starts 2021 With 500% Increase in Electricity Prices

Sudan's Prime Minister Abdalla Hamdok and German Chancellor Angela Merkel (not pictured) address the media at the Chancellery in Berlin, Germany, on February 14, 2020. REUTERS/Hannibal Hanschke/File Photo
Sudan's Prime Minister Abdalla Hamdok and German Chancellor Angela Merkel (not pictured) address the media at the Chancellery in Berlin, Germany, on February 14, 2020. REUTERS/Hannibal Hanschke/File Photo
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Sudan Starts 2021 With 500% Increase in Electricity Prices

Sudan's Prime Minister Abdalla Hamdok and German Chancellor Angela Merkel (not pictured) address the media at the Chancellery in Berlin, Germany, on February 14, 2020. REUTERS/Hannibal Hanschke/File Photo
Sudan's Prime Minister Abdalla Hamdok and German Chancellor Angela Merkel (not pictured) address the media at the Chancellery in Berlin, Germany, on February 14, 2020. REUTERS/Hannibal Hanschke/File Photo

The Sudanese people have welcomed the new year with increased prices of electricity for the residential and industrial sectors, despite the government’s pledges to maintain the subsidies for electricity in the budget of 2021.

The budget, however, is expected to negatively impact the economic and social conditions.

The increases surpassed the 500 percent for the residential sector, and the price of kilowatt rose from 80 piasters to SGD6.35. As for the industrial sector, the price for one kilowatt rose to SGD10.

On the occasion of the country's Independence Day, Sudanese Prime Minister Abdalla Hamdok pledged to find solutions to the economic crises, signaling major and strategic breakthroughs in the economic file after removing the country from the US State Sponsors of Terrorism list.

During ongoing talks regarding the budget, the parties of Sudan's ruling political coalition asserted that no increases will be imposed on the subsidized services and goods, which include fuels, electricity wheat, medicine, and cooking gas.

The transitional government in Sudan has been imposing strict economic measures, since August 2019, starting from decontrolling fuel prices which aggravated the living condition.

Economist Kamal Karrar commented on this, saying that the increase in electricity bills by such a huge amount represents an additional burden that citizens, especially those with low-income, are obliged to bear.

This will have repercussions on various industrial and productive sectors in the country, Karrar added.



Oil Extends Climb on Supply Fears, Trade War Concerns Cap Gains

FILE - Pump jacks extract oil from beneath the ground in North Dakota, May 19, 2021. (AP Photo/Matthew Brown, File)
FILE - Pump jacks extract oil from beneath the ground in North Dakota, May 19, 2021. (AP Photo/Matthew Brown, File)
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Oil Extends Climb on Supply Fears, Trade War Concerns Cap Gains

FILE - Pump jacks extract oil from beneath the ground in North Dakota, May 19, 2021. (AP Photo/Matthew Brown, File)
FILE - Pump jacks extract oil from beneath the ground in North Dakota, May 19, 2021. (AP Photo/Matthew Brown, File)

Oil prices inched higher on Tuesday after threats by US President Donald Trump to impose secondary tariffs on Russian crude and attack Iran, though worries about the impact of a trade war on global growth capped gains.

Brent futures rose 21 cents, or 0.3%, to $74.98 a barrel at 0645 GMT, while US West Texas Intermediate crude futures climbed 22 cents, or 0.3%, to $71.70.

The contracts settled at five-week highs a day earlier.

"Near-term risks are skewed to the upside, with US threats of secondary tariffs on Russian and Iranian oil leading market participants to price for the risks of tighter oil supplies," said Yeap Jun Rong, market strategist at IG, Reuters reported.

However, broader themes still revolve around concerns of upcoming tariffs weighing on global demand, along with prospects of increased supply from OPEC+ and the US, said Yeap.

A Reuters poll of 49 economists and analysts in March projected that oil prices would remain under pressure this year from US tariffs and economic slowdowns in India and China, while OPEC+ increases supply.

Slower global growth would dent fuel demand, which might offset any reduction in supply due to Trump's threats.

After news of Trump's threats initially boosted prices on Monday, traders told Reuters they viewed the president's warnings to Russia, at least, as a bluff.

Trump, on Sunday, told NBC News that he was very angry with Russian President Vladimir Putin and would impose secondary tariffs of 25% to 50% on Russian oil buyers if Moscow tries to block efforts to end the war in Ukraine.

Tariffs on buyers of oil from Russia, the world's second largest oil exporter, would disrupt global supply and hurt Moscow's biggest customers, China and India.

Trump also threatened Iran with similar tariffs and bombings if Tehran did not reach an agreement with the White House over its nuclear program.

"For now, it appears to be just a threat to Russia and Iran. However, if it becomes a reality, it creates plenty of upside risk to the market given the significant oil export volumes from both countries," said ING commodities strategists on Tuesday.

The market will be watching for weekly inventory data from US industry group the American Petroleum Institute later on Tuesday, ahead of official statistics from the Energy Information Administration on Wednesday.

Five analysts surveyed by Reuters estimated on average that US crude inventories fell by about 2.1 million barrels in the week to March 28.