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JUBA - 12 Jan 2017

Jubek governor bans black market trade in fuel

Augustino Jadalla, Governor of Jubek State in South Sudan has issued an order banning the sale of fuel and trade in hard currency by unauthorized in the black market. The Monday order prohibits sale of fuel and exchange of foreign currency in black market within the Juba town and areas under the administrative jurisdiction of the state.

Governor Jaddalla, according to the order, urged the Mayor of Juba City Council, police and security organs, to take necessary steps to implement the order.

It is not clear what motivated the governor to issue the order banning the sale of fuel and trading in hard currency in the black market. It also remains unclear whether the order would achieve its objective given the past experience with his predecessors who issued similar orders.

Observers attribute the cause of the decision to rise in fuel price.  The official fuel price at all filling stations stands at 22 South Sudanese pounds per litter but it is not available for clients.  A litter of fuel is about 150 pounds in the black market where it is available in abundant

Shortage of US dollars in commercial banks has forced traders and the public to exchange foreign currency in black market higher than the official rate.