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 Volume 10, Issue 6 (June 2023), Pages: 164-179


 Original Research Paper

Effects of fuel prices on economic activity: Evidence from Sudan


 Badreldin Mohamed Ahmed Abdulrahman *


 Department of Business Administration, Jouf University, Sakakah, Saudi Arabia

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 * Corresponding Author. 

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The impact of fuel prices on economic activity is a multifaceted phenomenon. Generally, an upward trend in fuel prices has the potential to impede economic growth, concurrently diminishing consumer expenditure on alternative commodities and services. The objective of this study is to scrutinize the influence of fuel prices on economic activity within Sudan, covering the period from 2000 to 2021. Employing a descriptive methodology, the study delineated the observed phenomenon, while employing a standard analytical approach for data analysis. The study yielded several noteworthy findings. Notably, at a confidence level of 1%, there was a statistically significant impact of fuel prices on oil revenues, as evident from the correlation coefficient of 0.628. Specifically, a 1% increase in fuel prices corresponded to a 0.099% increase in Sudan's oil revenues. Moreover, the study ascertained that the level of fuel prices significantly affected economic growth, whereby a 1% increase in fuel prices resulted in a 0.096% reduction in Sudan's economic growth rate. These findings align with previous research. Consequently, elevated fuel prices incur escalated transportation costs, amplifying the expenses associated with production and transport for businesses. Furthermore, higher fuel prices can instigate inflationary pressures, as the augmented transportation costs contribute to increased production expenses. Ultimately, this can constrain consumer spending, as individuals have limited disposable income for non-essential items. Conversely, lower fuel prices can engender heightened economic activity, granting consumers greater purchasing power for alternative goods and services.

 © 2023 The Authors. Published by IASE.

 This is an open access article under the CC BY-NC-ND license (

 Keywords: Fuel prices, Economic activity, GDP, Oil revenues, Economic growth

 Article History: Received 9 December 2022, Received in revised form 4 April 2023, Accepted 2 May 2023


No Acknowledgment.

 Compliance with ethical standards

 Conflict of interest: The author(s) declared no potential conflicts of interest with respect to the research, authorship, and/or publication of this article.


 Abdulrahman BMA (2023). Effects of fuel prices on economic activity: Evidence from Sudan. International Journal of Advanced and Applied Sciences, 10(6): 164-179

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