23rd February 2019
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Drop in oil prices affect the economy-Economist

Author : Hellen Achayo | Published: 4 years ago

A South Sudanese economist says South Sudan’s economy has been the worst affected by the drop in prices of oil in the international market.

Ahmed Morjan, who is also a lecturer from the University of Juba, said this is because South Sudan entirely depends on revenue collected from oil exports.

He says the national budget has also been affected as part of the oil money is given to the government of Sudan as part of an agreement between the two countries.

Morjan told Eye Radio’s Sundown Program that international crisis and the war that erupted in the country are other factors that are affecting the economy of South Sudan.

“Other reports may say that South Sudan is getting non-oil revenue, but to me, no. South Sudan has only been depending on oil and financial support from international bodies and other organizations. As such the economy has come very far especially after independence or before independence, depending on oil by almost 98%.” He said.

Around June this year, the country’s oil sold at 100 US dollar per barrel, but has now dropped to between 55 and 60 US dollar per barrel.

Out of this, South Sudan will still pay 26 US dollar per barrel to Sudan for both the pipeline and for recovery funds.