Cooking Gas in Sudan: Scarcity and Corruption

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Cooking Gas in Sudan: Scarcity and Corruption

The Scarcity Since October 2015, Sudan has faced a severe shortage of cooking gas. The government attributed this to maintenance at the Al Jaili refinery, which covers 80% of local consumption. However, statistics show a 50% supply gap, exacerbated by the government's struggle to secure foreign currency for imports.

Distribution and Monopoly The Minister of Oil and Gas claimed the problem was distribution, not supply, noting that four companies (Nile Gas, Iran Gas, Abarci Gas, and Aman Gas) control the market. Distribution agents have been accused of hoarding gas to create artificial shortages and drive up prices.

Corruption in the Black Market While the official price for a 12.5-kg cylinder is 25–35 SDG, it is often sold on the black market for 100–120 SDG.

  • Scams: Agents hire individuals (including students) to wait in long lines to buy gas at the official price, which the agent then resells at black market rates.
  • Preferential Treatment: Members of the regular forces and the ruling National Congress Party (NCP) often bypass lines to load multiple cylinders into their vehicles.

Impact The shortage forces households to use charcoal, which costs about 10 SDG per meal and contributes to deforestation and desertification. It also leads to price hikes in bread, food at restaurants, and other products.

Recommendations

  • Increase local exploration and production (e.g., the $70 million contract with a Russian company to liquefy gas from the Neem field).
  • Build high-capacity storage facilities to mitigate shortages during refinery maintenance.
  • Allow consumers to own cylinders from multiple companies to break monopolies.
  • Implement gas distribution networks in residential complexes to reduce middle-agent costs.