Feature: Fuel shortage disruptes business in South Sudan capital

Persistent fuel shortage has disrupted business in the South Sudanese capital Juba, a result of currency devaluation and ongoing conflicts in the oil-rich yet poverty-ridden country.

Oyoo Simon, who operates a heavy generator at Bakhita radio premises, told Xinhua that they expected to have no power within the next few days due to the difficulty in accessing fuel at one of the major fuel deports in the capital.

"The fuel shortage is affecting us too much. What I have bought can not run the generator for more than two weeks," Oyoo said after returning from the fuel deport with his drum of fuel.

He added that the long queues and jostling at the various fuel points in Juba makes it hard to stock fuel. "It takes more than three weeks to buy fuel from the petrol station," he said.

The city's fuel is imported through Kenya's Mombasa port amid high foreign exchange rates, with the U.S. dollar exchanging as high as 78 with South Sudanese Pound (SSP) in November, up from 32 in April.

Since August, the Sudan People's Liberation Army-in opposition (SPLA-IO) led by former First Vice President Riek Machar has staged several ambushes on trucks and vehicles along the Juba-Nimule road and the Juba-Yei road.

These have spread fear and anxiety among traders, leading to hiking prices of essential goods like food and fuel.

The state-run oil company Nilepet earlier this year took control of most private fuel stations in a bid to regulate and subsidize fuel, but prices kept soaring as more South Sudanese acquire fuel in the black market at exorbitant rates.

Truck driver Bob Duku told Xinhua that despite the higher fees, he still opted to buy fuel at the black market instead of at the petrol station in order to avoid delays.

"We take almost one week to get fuel at the petrol stations and so we resort to buying fuel from the expensive black market," he said.

A liter of fuel costs less than 1 dollar, but it remains expensive as currency devaluation in December 2015 by the Bank of South Sudan caused massive depreciation of the local SSP.

As a fragile peace remains in place amid intermittent fighting in the countryside, the situation remains uneasy due to surging cost of living amid delays in the passing of the 300 million dollar 2016/17 fiscal budget by government and salaries of civil servants.

Economist James Alic Garang with the Ebony Center for Strategic Studies in Juba told Xinhua that the persistent fuel crisis in the country since its independence in 2011 from Sudan has led to less productivity and low purchasing power.

He said that the uncertain situation also played a role in the low economic growth and productivity.

Garang also blamed the wrong timing of the hurriedly executed devaluation of the SSP last year, adding that in case of further increase in fuel price, the government should ensure it is commensurate with salaries of civil servants.

"It may be time to think the devaluation of the SSP by government last year was wrong. The SSP has lost value and may be it should be replaced with something else," he said. Endit