Sudan's Key Refinery Destructed, Deepens Fuel Crisis
Sudan's Key Refinery Destructed, Deepens Fuel Crisis

Sudan's Key Refinery Destructed, Deepens Fuel Crisis

  • 21-Mar-2025 10:15 PM
  • Journalist: Harold Finch

The brutal conflict raging in Sudan has dealt a devastating blow to the nation's already fragile economy, with the destruction of the Al-Jaili oil refinery near Khartoum plunging the country into a severe fuel crisis. Once a symbol of Sudan's industrial capacity, the Chinese-built facility now stands as a blackened ruin, a stark testament to the war's destructive power.

The refinery, captured by the paramilitary Rapid Support Forces (RSF) in the early days of the conflict and later recaptured by the Sudanese army, has been rendered inoperable after months of intense fighting and a catastrophic fire. Before the war, Al-Jaili processed up to 100,000 barrels of crude oil per day, meeting a significant portion of Sudan's domestic fuel needs. Its closure has created a critical supply gap, forcing Sudan to rely heavily on expensive fuel imports.

The damage to the refinery is extensive. Reports and on-site investigations reveal that many units within the refinery have been destroyed, requiring total replacement. The sheer cost of repairs, estimated at over $1.3 billion, and the complexity of sourcing replacement parts, much of which will require fabrication in overseas locations, means that restoration of the refinery will be a very long process. Some experts estimate that even with substantial funding, it will be at least three years before full operations could resume.

The economic ramifications of this shutdown are profound. Economist Khalid el-Tigani emphasized the refinery's vital role, stating that it supplied "50% of the country's petrol needs, 40% of its diesel and 50% of its cooking gas." With its destruction, Sudan's reliance on private sector imports, paid for in increasingly scarce foreign currency, has skyrocketed.

The impact of this forced dependence on imported fuel, is further exasperated by the devaluation of the Sudanese pound. With the currency plummeting from around 600 to the dollar pre war, to much larger numbers currently, the average Sudanese citizen faces insurmountable economic burdens. Meaning the cost of imported goods, especially fuel, is quickly becoming unattainable for the great majority of the Sudanese population.

This catastrophic blow to Sudan's energy infrastructure coincides with disruptions to the crucial oil pipelines that carry South Sudanese crude to Port Sudan. The interruption in oil exports has compounded the nations economic woes, as vital transit fees normally gained by Sudan are lost. Therefore, the compounding effect of the refinery’s destruction, and the loss of south sudanese pipeline fees, has deeply harmed the Sudanese economy.

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