South Sudan parliament rejects removal of fuel subsidies

[Elisabeth Janaina]

South Sudan parliament rejects removal of fuel subsidies
File photo: South Sudanese MPs stand during a parliamentary session in
Juba on 31 August 2011 (AFP)
File photo: South Sudanese MPs stand during a parliamentary session in
Juba on 31 August 2011 (AFP)

South Sudan’s parliament said on Tuesday it opposed a government plan
to lift fuel subsidies, a move that will hinder the finance ministry’s
efforts to control a swelling budget deficit in the fledgling nation.

The move may be highly welcomed by citizens, but the world’s youngest
nation is troubled by a wide fiscal deficit after shutting down some
oil fields due to the ongoing civil war.

Oil is the main source of South Sudan’s exports and government revenue
as well as a major source of hard currency.

The Speaker of National Legislative Assembly said in a statement after
submitting the 2017/2018 budget to President Kiir in Juba yesterday
that they decided to reject a proposal to lift subsidies on fuel in a
package of economic measures to help bridge the gap.

“The budget had some valuable discussions from the members of
parliament. They discussed it extensively and they discussed
especially the critical thing was the lifting of the fuel subsidy, so
the parliament rejected the lifting of the fuel subsidy in the
budget,” he said.

“It was rejected so that it does not bring the burden to our people,
so the president is very conscious about that the citizens are
suffering,” he added.

In July, South Sudan's minister of finance and economic planning
sought parliament’s approval to lift fuel subsidies to allow the
government to use what it could save to meet other obligations,
including payment of civil servants’ salaries on time.

The current fuel price is fixed at 22 SSP per litter.