KHARTOUM, Dec 12 (Reuters) - Sudan's parliament on Monday rejected a central bank plan to scrap fuel subsidies to help cut expenditures as the African country struggles with an economic crisis, state media said.
Sudan's economy was thrown into turmoil when South Sudan became independent in July, taking away with it two-thirds of the country's 500,000 barrels a day of oil production.
The loss of oil revenues -- the lifeline of the economy -- has driven up the cost of food and other imports, triggering small anti-government protests in recent months.
To cut spending, Central Bank Governor Mohamed Kheir al-Zubeir proposed in October gradually lifting fuel subsidies, a sensitive issue.
But parliament rejected the plea, calling on Finance Minister Ali Mahmoud to find alternatives to cut state expenditures, state news agency SUNA said.
Ordinary Sudanese have been hit hard by years of conflict, high inflation, U.S. trade sanctions, corruption and high unemployment.
Annual inflation hit 19.1 percent in November, up from 15 percent in June. The Sudanese pound has fallen on the black market since July due to a lack of dollars as oil revenues dried up.
Fuel is sold at about ${esc.dollar}60 a barrel in Sudan, while benchmark global oil prices are currently around ${esc.dollar}100 a barrel. (Reporting by Ulf Laessing)
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