Sudan to Raise Import Duties on 130 Items

Sudanese Customs Headquarters (Sudanese Customs Authority)
Sudanese Customs Headquarters (Sudanese Customs Authority)
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Sudan to Raise Import Duties on 130 Items

Sudanese Customs Headquarters (Sudanese Customs Authority)
Sudanese Customs Headquarters (Sudanese Customs Authority)

The Sudanese authorities have raised customs duties on 130 commodities, including gasoline and wheat, to cover the expected deficit in this year's budget.

The tariff hike, which immediately entered into force, would increase the prices of many imported and local goods amid the country's stagflation.

The Customs Authority stated that the amendment of customs categories came following the government's decision.

The increase in customs duties for transport vehicles of various weights ranged between 25 and 40 percent, while electric cars were exempted from any customs duties, and no new amendments were made to the customs of four-wheel drive vehicles.

Customs increases affected meat, fish, fruits, spices, and luxury goods, between 20 and 40 percent.

In February, Sudan's Sovereignty Council and the government approved the 2023 budget after a delay of over a month.

Budget revenues amounted to 7.363 trillion Sudanese pounds, and public spending amounted to 8.196 trillion pounds, with a deficit of 1.4 percent of GDP.

The state seeks to increase revenues and bridge the budget deficit by expanding the tax umbrella instead of raising taxes and rationalizing government spending.

The inflation rate in January dropped to 83 percent, compared to December last year, which recorded 87.32 percent.

The US froze aid worth $700 million and European Union countries announced the suspension of any financial assistance after Sudan’s military coup in October 2021.

The World Bank also suspended all aid to Sudan and halted decisions on any new operations after the military seized power.

The funds allocated to help civil transition are estimated at two billion dollars, in addition to supporting the budget and large economic projects that contribute to achieving estimated growth in the coming years.

The World Bank and the International Monetary Fund (IMF) had granted Sudan financial support to reduce its external debt by half under the Heavily Indebted Poor Countries (HIPC) initiative. The debt was reduced to $28 billion.



Oil Set for Steepest Weekly Decline in Two Years as Risk Subsides

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 Set for Steepest Weekly Decline in Two Years as Risk Subsides

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 rose on Friday though were set for their steepest weekly decline since March 2023, as the absence of significant supply disruption from the Iran-Israel conflict saw any risk premium evaporate.

Brent crude futures rose 50 cents, or 0.7%, to $68.23 a barrel by 1036 GMT while US West Texas Intermediate crude gained 49 cents, or nearly 0.8%, to $65.73.

During the 12-day war that started after Israel targeted Iran's nuclear facilities on June 13, Brent prices rose briefly to above $80 a barrel before slumping to $67 a barrel after US President Donald Trump announced an Iran-Israel ceasefire.

That put both contracts on course for a weekly fall of about 12%.

"The market has almost entirely shrugged off the geopolitical risk premiums from almost a week ago as we return to a fundamentals-driven market," said Rystad analyst Janiv Shah.

"The market also has to keep eyes on the OPEC+ meeting – we do expect room for one more month of an accelerated unwinding basis balances and structure, but the key question is how strong the summer demand indicators are showing up to be."

The OPEC+ members will meet on July 6 to decide on August production levels.

Prices were also being supported by multiple oil inventory reports that showed strong draws in the middle distillates, said Tamas Varga, a PVM Oil Associates analyst.

Data from the US Energy Information Administration on Wednesday showed crude oil and fuel inventories fell a week earlier, with refining activity and demand rising.

Meanwhile, data on Thursday showed that the independently held gasoil stocks at the Amsterdam-Rotterdam-Antwerp (ARA) refining and storage hub fell to their lowest in over a year, while Singapore's middle distillates inventories declined as net exports climbed week on week.

Additionally, China's Iranian oil imports surged in June as shipments accelerated before the conflict and demand from independent refineries improved, analysts said.

China is the world's top oil importer and biggest buyer of Iranian crude. It bought more than 1.8 million barrels per day (bpd) of Iranian crude from June 1-20, according to ship-tracker Vortexa, a record high based on the firm's data.