Economic development and the allocation of petroleum products in Sudan

The Sudanese economy has been characterized in recent years by severe energy shortages which have affected all economic activity. More than 94% of the commercial energy is imported and the level of such imports is seriously limited by the current foreign exchange crisis. However, the problem is not just one of foreign exchange; there is also the problem of utilization of resources to avoid bottleneck problems of supply. The allocation of petroleum products in Sudan has had a severe effect on all aspects of economic life. The aim of this paper is to highlight the problem and to build a model to optimize the distribution of petroleum products in order to achieve at least a minimal supply in all regions. A large linear programming model has been developed and the solution indicates that current facilities should be able to satisfy 96% of the 1986 demand, about 30% more than the actual supply. Furthermore, with a little investment in storage facilities and extra trucks, the supply could satisfy total demand in the immediate future