FILE PHOTO: Fuel tankers arriving to Northern Bahr el Ghazal state capital Aweil from Juba [Photo via Facebook]

The Ministry of Petroleum has lifted all restrictions that limited fuel imports to the Government-to-Government (G2G) fuel supply arrangement, allowing all qualified and licensed importers to resume importing and supplying petroleum products to South Sudan pending a government review of the policy.

In a directive issued on Saturday, Undersecretary Santino Chuol Martin said the ministry was acting in compliance with an order from the Ministerial High-Level Committee on Economic Reforms issued on July 23.

“Accordingly, and in compliance with the above directive, the Ministry hereby lifts, with immediate effect, all administrative restrictions and enforcement measures contained in our previous communications that limited the importation or supply of petroleum products exclusively under the G2G framework,” the directive reads.

The ministry said the decision also includes “the suspension of any measures restricting access to the South Sudan fuel market by other qualified and duly licensed importers operating in accordance with the applicable laws and regulations.”

Under the new directive, qualified fuel importers “may continue to load, transport, import, and supply petroleum products to the Republic of South Sudan in accordance with the applicable laws, regulations, customs procedures, and tax obligations.”

The ministry further directed that “no enforcement action shall be taken against compliant importers solely on the basis that petroleum products were sourced outside the existing G2G arrangement during this interim review period.”

However, it emphasized that all importers must continue to comply with the Petroleum Act, applicable tax laws, quality standards, environmental requirements and all other regulatory obligations governing the petroleum sector.

The ministry said the temporary measure will remain in force until the Government reaches a final decision on the future of the G2G fuel supply framework.

“The Government remains committed to ensuring adequate fuel supply, fair competition, market stability, and protection of consumers while the comprehensive review of the G2G arrangement is being concluded,” the statement said.

It also appealed to fuel dealers to act responsibly during the transition. “The Ministry appreciates the cooperation of all stakeholders and urges every market participant to conduct business responsibly, maintain uninterrupted fuel supplies, avoid speculative practices, and fully cooperate with the relevant regulatory authorities in safeguarding the country’s energy security,” the statement added.

The ministry’s action followed a directive from the Ministerial High-Level Committee on Economic Reforms, chaired by Cde. Pieng Kuol, which expressed concern that maintaining restrictions during the review period could destabilize the fuel market.

In a letter addressed to the Ministry of Petroleum, the committee directed the ministry “to suspend any restriction that limits other qualified and compliant fuel importers from loading, transporting, or supplying fuel to the Republic of South Sudan.”

The committee said the suspension would remain in place “pending the completion of the ongoing reviews and the final decision of the Government regarding the G2G arrangement.”

Explaining its decision, the committee warned that “restricting other importers at this stage may aggravate the current market uncertainty, reduce available supply, encourage speculative pricing, and cause debilitating economic consequences for households, businesses, transport operators, and essential public services.”

It added that “the fuel sector is strategic to national macroeconomic stability, and any disruption in supply would have immediate and severe effects across the country.”

The committee instructed the Ministry of Petroleum “to take all necessary steps within your authority to ensure that all qualified and compliant fuel importers are allowed to continue operations under the applicable laws, regulations, and tax obligations while the Government undertakes its review of the G2G arrangement.”

According to the committee, the temporary measure is necessary “to preserve supply continuity, protect consumers, and maintain confidence in the fuel market until a final policy position is adopted.”

The committee concluded by expressing confidence that the ministry would ensure the fuel sector “remains stable, competitive, and responsive to the needs of the population during this review period.”

The G2G fuel import arrangement remains under government review, with the latest directives temporarily reopening the market to all qualified and licensed fuel importers until a final policy decision is announced.