Petroleum Companies Reject “Central Bank” Restrictions, Warn of Fuel Crisis and Imminent Monopoly

Khartoum / Cairo — Nihad Oshi

The National Chamber of Petroleum Products Importers in Sudan has announced its outright rejection of holding private sector companies responsible for the decline in the value of the Sudanese pound or the rise in foreign currency exchange rates in the local market.

The chamber criticized the recent requirement imposed by the Central Bank of Sudan (CBOS) to deposit a gold collateral as a guarantee for issuing fuel import certificates, warning that the decision would create additional demand for gold, pushing its local price above the global rate. This, it said, would result in distortions in the cost of commodities priced in hard currencies.

In a press statement, the chamber explained that the recent rise in exchange rates is driven by imbalances in supply and demand, alongside the impact of global economic conditions and geopolitical and military tensions in the Middle East. It noted that these tensions have increased global oil prices and raised shipping and maritime insurance costs, thereby inflating the fuel import bill and increasing demand for hard currency in Sudan and other economies worldwide, while Sudanese gold exports have not increased and global gold prices have declined.

The chamber further stated that the Central Bank circular has raised several fundamental questions for which no clear answers have been provided, creating a state of legal and financial uncertainty and increasing operational risks for companies.

Among the key questions raised are whether the guarantee is required for each shipment or only once, the mechanism for valuing the gold and whether it is priced at the official rate or prevailing market rate, when and how it will be recovered, whether the guarantee will be returned in kind or in cash, and who will bear the risk of fluctuations in global gold prices.