Hon. Michael Makuei, the Minister of Information and government official Spokesperson - Credit: Moses Awan/Eye Radio - April 26, 2023

The government said Friday that the country’s crude oil price has plunged from $100 per barrel to $70 per barrel as oil companies allegedly exploiting the insecurity in Sudan force it to devalue the price.

Information Minister Michael Makuei said oil exporting companies are unwilling to buy the crude oil at Port Sudan unless the government sells it at a desperate price.

“Price of oil of course has been fluctuating from 100 to 80 to 70, but as of now, prices are negotiable from 70 downward because if you get the contractor who is ready to risk,” Makuei said during the regular Council of Ministers meeting Friday.

The price of crude oil in the international market is around 80 US dollars per barrel.

Also before the Sudan crisis, South Sudan used to sell the crude at about $100, but it is currently selling at 70 dollars and below according to the government official.

“He (crude buyer) will come and say, okay I will buy, but he will try to buy it at that low so that he can make more money because these days people make use or exploit situations because if you are in need, you will be exploited accordingly.”

Makuei also said oil companies have scaled down operations due to security risks resulting from the fighting in Sudan.

“This is what is happening with some of these business companies and this is why the prices of the oil exported through Port Sudan have dropped not all over the world but our prices of the oil that is exported. So, if we had any other routes of exporting our oil, we would have not been affected.”

Minister Michael Makuei went on to say, the Minister of Petroleum has been directed to ensure that Bentiu refinery is operational.

He added that the Minister of Roads and Bridges has also been instructed to construct Bentiu – Gogrial road as well as Pagak road to ease transportation of South Sudan oil from the drilling sites.

“The Minister of Roads as well as the Ministry of Petroleum should work hard to ensure that the Bentiu refinery is operational and the routes of evacuation and storage are made available so that we can refine our oil instead of subjecting it to the current situation again.”

“In addition to that the routes for evacuation that is the Bantiu route to Gogrial should built immediately so that we continue to evacuate the oil. Also we recommended that Pagak road should also be reconstructed so that it is open to give room also for evacuation through Djibouti.”