{"id":61849,"date":"2026-06-13T20:46:37","date_gmt":"2026-06-13T17:46:37","guid":{"rendered":"https:\/\/sudanevents.com\/?p=61849"},"modified":"2026-06-13T20:46:37","modified_gmt":"2026-06-13T17:46:37","slug":"petroleum-tenders-genuine-reform-or-a-cover-for-new-corruption","status":"publish","type":"post","link":"https:\/\/sudanevents.com\/index.php\/2026\/06\/13\/petroleum-tenders-genuine-reform-or-a-cover-for-new-corruption\/","title":{"rendered":"Petroleum Tenders: Genuine Reform or a Cover for New Corruption?"},"content":{"rendered":"

As I See\u00a0<\/strong><\/span><\/p>\n

Adil El-Baz<\/strong><\/span><\/p>\n

Introduction<\/strong><\/span><\/p>\n

After writing this article, the Council of Ministers, in its session held this afternoon under the chairmanship of Prime Minister Professor Kamil Idris, approved government participation in the importation of petroleum products with the aim of regulating the market and stabilizing the exchange rate.<\/strong><\/p>\n

I fully support this decision and have advocated for it in more than one article. However, there remains a lack of clarity and considerable ambiguity. Several questions need answers before we can determine whether this decision truly serves the national interest or represents yet another maneuver whose consequences remain unclear.<\/strong><\/p>\n

For example:<\/strong><\/p>\n

When we say that the government itself will import petroleum products, what exactly does that mean? Will the government delegate the task to its bankrupt state-owned companies, which themselves openly engage in brokerage activities and sell import permits to the petroleum mafia? If so, then nothing will have changed.<\/strong><\/p>\n

Will the government and the relevant authorities implement the Cabinet’s decision through so-called “qualified companies,” or through international firms with which the government contracts directly and to which it pays for petroleum supplies?<\/strong><\/p>\n

Or will the Ministry of Energy proceed with its recently announced decision to issue an international tender for petroleum imports?<\/strong><\/p>\n

The real question is: what mechanisms will the state employ? Once these questions are answered, we can take a definitive position on the decision.<\/strong><\/p>\n

Now to the article.<\/strong><\/p>\n

1.<\/strong><\/p>\n

On June 9, 2026, the Ministry of Energy issued new regulations intended to ensure the smooth supply of petroleum products. According to the ministry’s statement, the measures aim to enhance transparency through international tenders for fuel imports.<\/strong><\/p>\n

Yet the statement raises numerous questions, including the assertion that “these regulations will be implemented in coordination with qualified companies from both the public and private sectors.”<\/strong><\/p>\n

What role do companies from either sector have in regulations that should be established solely by the government\u2014namely, the Ministry of Energy?<\/strong><\/p>\n

My understanding is straightforward: the government announces a tender for petroleum imports, financially and technically capable international or local firms compete, and the company offering the best price and strongest guarantees wins the contract.<\/strong><\/p>\n

So where exactly do these “qualified companies” fit into the picture? Their inclusion is puzzling.<\/strong><\/p>\n

I repeatedly attempted to contact the minister for clarification but was unsuccessful. I will continue trying. To be fair, he is not known for ignoring journalists’ calls; in fact, he is perhaps the only minister who consistently responds. My sincere thanks to him for that.<\/strong><\/p>\n

2.<\/strong><\/p>\n

The repeated talk about “qualified companies” is, in reality, little more than an attempt to revive the notorious “groups system,” a model that has already demonstrated its complete failure.<\/strong><\/p>\n

The only viable solution is to abolish that system altogether. Most of these groups consist of brokers who openly trade import permits, while the truly disturbing aspect is that government-owned companies themselves are often the ones selling those permits.<\/strong><\/p>\n

The groups, comprising 39 companies, have effectively become a marketplace for petroleum brokerage and speculation. These firms obtain import permits from the Ministry of Energy and then openly resell them, earning millions of dollars in the process.<\/strong><\/p>\n

Such practices raise legitimate doubts about the government’s commitment to reforming the sector. If the so-called groups system remains in place, there is little point in holding international tenders, as they will simply become a fa\u00e7ade for companies lacking both financial and technical capacity.<\/strong><\/p>\n

The reality is that there are currently no genuine state-owned companies with the financial resources or liquidity needed to import fuel independently. Their dire financial condition reduces them to little more than legal cover through which mafia-style deals are conducted, generating small commissions for beneficiaries while ordinary citizens bear the ultimate cost.<\/strong><\/p>\n

What Sudan needs is a direct import mechanism that eliminates middlemen who have grown accustomed to operating in the shadows.<\/strong><\/p>\n

As long as this troubling overlap between private interests, public-sector companies, and the state’s regulatory role persists, “international tenders” will remain little more than a theatrical performance that changes nothing.<\/strong><\/p>\n

3.<\/strong><\/p>\n

The truth is that all this maneuvering is pointless. Every one of these policies has been tried before and produced no meaningful results.<\/strong><\/p>\n

For years, Sudan has been trapped in a vicious cycle: private companies earn millions in profits while the government remains unable to meet its obligations to fuel suppliers.<\/strong><\/p>\n

The way out is for the Ministry of Energy to assume direct responsibility and contract with major international companies capable of guaranteeing fuel supplies at prices that reflect actual costs rather than the greed of brokers.<\/strong><\/p>\n

Even if international tenders are used now, authorities must not circumvent them and return to the same old practices under the label of the “groups system.”<\/strong><\/p>\n

Major international suppliers typically provide governments with sufficient time to arrange financing and foreign exchange. By contrast, bankrupt public and private local companies import fuel and then rush into the parallel currency market to buy dollars, driving exchange rates sharply higher\u2014as is happening now.<\/strong><\/p>\n

Consider this: as of Saturday, June 13, 2026, there are eleven fuel tankers waiting at port. All of them will ultimately generate demand for dollars. How high will the exchange rate climb?<\/strong><\/p>\n

Why are there eleven tankers holding import permits when the country’s monthly requirement is only three?<\/strong><\/p>\n

The answer is brokerage, made possible by the groups system that the mafia continues to defend.<\/strong><\/p>\n

Daily demurrage charges for these vessels amount to tens of thousands of dollars, representing a substantial waste of resources. These costs are eventually added to fuel prices and passed on to citizens and productive sectors, enriching fuel barons while ordinary people are left with the consequences.<\/strong><\/p>\n

4.<\/strong><\/p>\n

There is another solution that many of us have advocated for repeatedly\u2014a proven approach that has delivered excellent results elsewhere: concluding a supply agreement with .<\/strong><\/p>\n

What puzzles me is that such an agreement appears nearly ready for completion.<\/strong><\/p>\n

The process reportedly began when General requested that Crown Prince direct Aramco to supply Sudan with petroleum products. The Crown Prince reportedly instructed Energy Minister accordingly, and the directive was passed on to the company.<\/strong><\/p>\n

All that remained was for the Sudanese government to establish direct contact with Aramco.<\/strong><\/p>\n

Yet for three months, according to the author, the government and its diplomatic mission in Riyadh have failed to reach the company. In his view, officials should have camped outside its gates because this represents the most promising solution to the current crisis.<\/strong><\/p>\n

Comparison: Groups System vs. Direct Contract with Aramco<\/strong><\/span><\/p>\n\n\n\n\n\n\n\n\n
Criteria<\/strong><\/th>\nGroups System (Current Situation)<\/strong><\/th>\nDirect Contract with Aramco (Proposed)<\/strong><\/th>\n<\/tr>\n<\/thead>\n
Financing Mechanism<\/strong><\/td>\nImmediate pressure on the parallel currency market<\/strong><\/td>\nDeferred payment facilities (up to 180 days)<\/strong><\/td>\n<\/tr>\n
Cost<\/strong><\/td>\nHigher due to brokers’ commissions and intermediaries<\/strong><\/td>\nDirect producer pricing<\/strong><\/td>\n<\/tr>\n
Supply Stability<\/strong><\/td>\nUnpredictable and dependent on waiting vessels<\/strong><\/td>\nStable and scheduled according to actual demand<\/strong><\/td>\n<\/tr>\n
Transparency<\/strong><\/td>\nOpaque and difficult to monitor<\/strong><\/td>\nGovernment-to-government arrangement reducing corruption risks<\/strong><\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n

Potential Benefits of an Aramco Agreement<\/strong><\/span><\/p>\n

    \n
  • Reduced financial pressure: Deferred payment terms of up to 180 days, similar to arrangements reportedly used elsewhere, could ease pressure on foreign exchange reserves and help stabilize the exchange rate.<\/strong><\/li>\n
  • Supply stability: Moving away from ad hoc transactions toward a predictable supply system based on actual consumption needs.<\/strong><\/li>\n
  • Logistical advantages: Geographic proximity could reduce transportation costs and delivery times while ensuring more stable pricing.<\/strong><\/li>\n
  • Strategic infrastructure: The arrangement could open the door to establishing strategic storage facilities and strengthening Sudan’s energy security.<\/strong><\/li>\n<\/ul>\n

    5.<\/strong><\/p>\n

    Finally, now that Lieutenant General Ibrahim Jaber has reportedly assumed responsibility for the file, I hope he will pursue a transformative solution by seeking an urgent meeting with Aramco on behalf of the Sudanese government, particularly given what the author describes as a Saudi green light for cooperation.<\/strong><\/p>\n

    Kenya, he notes, adopted a similar approach and resolved its fuel-supply difficulties. Uganda likewise pursued comparable arrangements with international suppliers.<\/strong><\/p>\n

    Meanwhile, in Sudan, brokers continue to wield what amounts to a veto over government policy.<\/strong><\/p>\n

    Unless General Jaber is willing to think beyond conventional approaches, no financing portfolio or temporary measure will solve the problem.<\/strong><\/p>\n

    The question remains: will the will for reform prevail, supported by Saudi cooperation, or will the petroleum mafia continue to dictate Sudan’s energy policy?<\/strong><\/p>\n

    The Sudanese citizen no longer has the luxury of waiting. Patience, after all, has its limits.<\/strong><\/p>\n","protected":false},"excerpt":{"rendered":"

    As I See\u00a0 Adil El-Baz Introduction After writing this article, the Council of Ministers, in its session held this afternoon under the chairmanship of Prime Minister Professor Kamil Idris, approved government participation in the importation of petroleum products with the aim of regulating the market and stabilizing the exchange rate. I fully support this decision …<\/p>\n","protected":false},"author":2,"featured_media":58017,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[19],"tags":[],"class_list":["post-61849","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-opinion"],"_links":{"self":[{"href":"https:\/\/sudanevents.com\/index.php\/wp-json\/wp\/v2\/posts\/61849","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/sudanevents.com\/index.php\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/sudanevents.com\/index.php\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/sudanevents.com\/index.php\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/sudanevents.com\/index.php\/wp-json\/wp\/v2\/comments?post=61849"}],"version-history":[{"count":1,"href":"https:\/\/sudanevents.com\/index.php\/wp-json\/wp\/v2\/posts\/61849\/revisions"}],"predecessor-version":[{"id":61850,"href":"https:\/\/sudanevents.com\/index.php\/wp-json\/wp\/v2\/posts\/61849\/revisions\/61850"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/sudanevents.com\/index.php\/wp-json\/wp\/v2\/media\/58017"}],"wp:attachment":[{"href":"https:\/\/sudanevents.com\/index.php\/wp-json\/wp\/v2\/media?parent=61849"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/sudanevents.com\/index.php\/wp-json\/wp\/v2\/categories?post=61849"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/sudanevents.com\/index.php\/wp-json\/wp\/v2\/tags?post=61849"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}