Rwanda to construct fuel storage facility

Jul 15, 2010 02:00 AM

Oil prices have staggered between $ 75 (Rwf 44,047) and $ 80 (Rwf 46,984) per barrel for about a year leading to fluctuation in local pump prices. This according to officials caused the country to experience its first ever highest fuel price tag.
As a result, the government is set to construct a huge storage facility so as to have control of the local pump prices just in case of an international prices hike as happened earlier.

According to the Permanent Secretary in the Ministry of Trade and Industry, Emmanuel Hategeka, government is working-out a strategy where petroleum products will be purchased in bulk.
"We don't decide the trend of international oil prices, so we depend on the international trend-but the government's intension is to always stabilise the price so as not to destabilise the market," Hategeka said.

At the beginning of July, fuel prices for premium super fell from Rwf 940 to Rwf 925 per litre while diesel fell from Rwf 940 to Rwf 917, which was attributed to the continued drop in oil prices on the international market.
However, very soon, oil prices on the international market are rising again. On July 5th a barrel was trading at $ 71 (Rwf 41,698), July 12th $ 74 (Rwf 43, 460), currently barrel is trading $ 77 (Rwf 45,222).

Hategeka also said that fuel is a sensitive product which is regulated.
"That's why we (Government) meets with petroleum dealers and review the behaviour of the trend on the international market," he said.
In May, pump prices increased from Rwf 918 to Rwf 940 for both petrol and diesel per litre being the first highest pump price the country has ever experienced. The increase was attributed to the hike of a barrel on the international market from $ 70 (Rwf 40,880) to $ 89 (Rwf 51,709). Experts have predicted that given the strength of the fundamentals, a barrel is likely to increase as above as $ 80 a barrel.

Source / The New Times
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