Sudan Drops Petrol, Diesel Prices

Sudan announced the second reduction in fuel prices in a month. (Reuters)
Sudan announced the second reduction in fuel prices in a month. (Reuters)
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Sudan Drops Petrol, Diesel Prices

Sudan announced the second reduction in fuel prices in a month. (Reuters)
Sudan announced the second reduction in fuel prices in a month. (Reuters)

Sudanese authorities announced the reduction of fuel prices following their monthly review of local production and developments in global oil production.

Petrol prices fell on Tuesday from SDG700 to SDG522 per liter, while diesel prices decreased slightly from SDG687 to SDG672 per liter.

Up until August, Sudan had the fourth highest price of gasoline per liter in the Arab world.

The transitional government, dismissed in June last year, approved the full liberalization of fuel prices as part of a package of requirements of international financial institutions to relieve Sudan's $60 billion debt.

It is the second devaluation in less than a month and two years after the government adopted an economic reform policy and devalued the Sudanese pound. It is expected to be reflected in other commodities whose prices are rising due to the high cost of transportation.

The state spends $1 billion annually to subsidize fuel prices.

The government believes that the liberalization of fuel prices limits smuggling, reduces inflation, eliminates markups, and paves the way for the state to support citizens in health, education, and infrastructure services.

Domestic production covers about 70 percent of gasoline and cooking gas and 40 percent of gasoline, and imports cover the deficit.

Meanwhile, Sudan's Central Bureau of Statistics announced that annual inflation dropped from 125.41 percent in July to 117.42 percent in August.

Last month, the Ministry of Finance announced an increase in the exchange rate of foreign currencies in the customs system and raised the dollar from SDG445 to SDG564, which hindered exports and imports and reduced government revenues to about half.

The army's measures to seize power in the country last year led to the halt of billions of dollars in international financial aid to Sudan earmarked to mitigate the effects of economic reforms on the citizens. The resumption of aid is contingent upon the return of a civilian-led government.



S&P Reaffirms Sultanate of Oman’s Sovereign Credit Rating at ‘BBB-’

S&P reaffirmed the Sultanate of Oman’s long-term sovereign credit rating at ‘BBB-’ Asharq Al-Awsat
S&P reaffirmed the Sultanate of Oman’s long-term sovereign credit rating at ‘BBB-’ Asharq Al-Awsat
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S&P Reaffirms Sultanate of Oman’s Sovereign Credit Rating at ‘BBB-’

S&P reaffirmed the Sultanate of Oman’s long-term sovereign credit rating at ‘BBB-’ Asharq Al-Awsat
S&P reaffirmed the Sultanate of Oman’s long-term sovereign credit rating at ‘BBB-’ Asharq Al-Awsat

Standard & Poor’s Global Ratings (S&P) has reaffirmed the Sultanate of Oman’s long-term sovereign credit rating at ‘BBB-’ with a Stable Outlook, citing the government’s ongoing efforts to reduce public debt and the continued improvement in the State’s fiscal performance.

Last September, S&P had upgraded the country’s long-term foreign and local currency sovereign credit ratings from 'BB+' to 'BBB-'.

The agency confirmed that the Sultanate’s credit rating may witness further improvement over the next two years if the government continues to manage the country’s public finances as planned, including increasing non-oil revenues and improving the efficiency of public spending.

It noted that these measures are expected to continue to boost GDP growth, supported by continued growth in non-oil GDP, in addition to continuing measures aimed at promoting the establishment and growth of companies and projects that support economic diversification activities and operations, in addition to initiatives to develop the capital market sector.

The agency noted in its report that the Sultanate has made significant progress in recent years in addressing the structural challenges it faced, including the large deficit in the state’s general budget and balance of payments.

It expected Oman’s real GDP to grow by 2% in the next three years (2025-2028), while the net public debt is expected to decrease to an average of GDP by 1.5% between 2025-2028.

This is attributed, according to the agency, to the assumption that the average price of Brent crude will reach $70 per barrel over the next two years, compared to $81 per barrel in 2024, in addition to a decline in oil production due to the Sultanate of Oman’s commitment to voluntary cuts under the OPEC+ agreement.

The agency also expects the current account to record a financial surplus averaging 1.3% of GDP during the period 2025-2028, noting that Oman has been able to cover the large deficits.

Standard & Poor’s expected inflation rates to remain at moderate levels, averaging about 1.5% annually during the period 2025-2028, after reaching about 1% in 2024.

The agency said the success of the Sultanate’s efforts to reduce total public debt from 68% of GDP in 2020 to 36% in 2024.

It also expects highly liquid assets to remain close to 40% of GDP during the period 2025-2028.

Also, the agency commended the efforts made to develop the hydrogen production sector, in light of Oman’s intention to achieve carbon neutrality by 2050, which will enable the country to become one of the leading hydrogen exporters by 2030.