Need to mitigate fuel price increases

The price of fuel affects our daily lives in one way or other. The ripple effects of fuel price increases are felt in different areas; be it in increased transport fares, or rising food and commodity prices. That is why Rwandan’s have to brace themselves for a possible negative impact of the just increased prices of diesel and petrol by five percent. It is also projected that the global price of a barrel could reach $80 by early next year. This is the first time the price of fuel has changed, since last November, when it droped. Meaning consumers who  have enjoyed a steady economic ride in their daily lives, without too many turbulences, will now have to plan for some belt tightening.

The price of fuel affects our daily lives in one way or other. The ripple effects of fuel price increases are felt in different areas; be it in increased transport fares, or rising food and commodity prices.

That is why Rwandan’s have to brace themselves for a possible negative impact of the just increased prices of diesel and petrol by five percent. It is also projected that the global price of a barrel could reach $80 by early next year.

This is the first time the price of fuel has changed, since last November, when it droped. Meaning consumers who  have enjoyed a steady economic ride in their daily lives, without too many turbulences, will now have to plan for some belt tightening.

Rwanda is one of the few landlocked countries that has over the years sought to mitigate the effects of increasing global fuel prices through government subsidies.

However, with the global financial crisis seeming to be slowly pinching every aspect of economic life, the price of fuel, has not been spared. Creating a fresh challenge for government effort.

Some have dismissed the global increase in fuel as being in response to ‘market forces’ but as a result of speculation by oil producing countries who stand to profit.

Whatever the case the burden unfortunately lies on the relevant government ministries to ensure that measures are put in place to mitigate the rising fuel prices and cushion consumers from any related adverse effects.  

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