UPDATE 1-Sudan cuts petrol and diesel prices for consumers - minister

(Adds details, background)

KHARTOUM, Nov 21 (Reuters) - Sudan has lowered pump prices for petrol and diesel for consumers, acting energy and mining minister Khairy Abdel Rahman said on Saturday.

The government has been phasing out fuel subsidies to help reduce a gaping budget deficit as it is battling an economic crisis.

Among the reduced prices, Abdel Rahman said subsidized locally produced car petrol would be reduced to 54.7 pounds a liter from 56 pounds before.

He did not say what the impact of the price reductions would be on the budget. The government regularly reviews pump prices.

Sudan has long fixed fuel prices at some of the lowest levels in the world but the cost of subsidising fuel has weighed heavily on the state budget.

Sudan suffers from severe fuel shortages, and queues of cars can be often seen in front of fuel stations in the capital Khartoum. In April the government allowed private sector and banks to import fuel for transportation, mining and industry.

Abdel Rahman also said fuel production at Khartoum refinery will halt on Dec. 1 for maintenance work. (Reporting by Hesham Abdul Khalek, Ahmed Tolba and Khalid Abdelaziz; Writing by Ulf Laessing Editing by Kevin Liffey and Frances Kerry)