Prepared by Valentina Flamini. The incidence analysis has been computed by Kenichiro Kashiwase based on data provided by the World Bank.
In January 2011, the government increased the price of diesel and gasoline by 2 SDGs per gallon, and the price of jet oil by 1.85 SDG per gallon—equal to a 44 percent increase for diesel, a 40 percent increase for jet oil and a 31 percent increase for gasoline-and the price of LPG from 12 to 13 SDGs per cylinder. The additional margin is collected by the customs and credited to the Ministry of Finance and National Economy (MOFNE) as a stabilization fund.
On April 10 2012, South Sudan seized the contested Heglig oilfield, which produces almost half of Sudan’s 115 thousand bpd, creating extensive damage to the oil infrastructure in the area. By May 7, most of the oil production from the Heglig area was reportedly resumed.
Since consumption of diesel and jet fuel is not covered in the 2009 National Budget Household Survey (NBHS), the welfare effect of an increase in the price of those commodities on household income cannot be directly quantified with the methodology used in this chapter.