Gov’t concerned by increase in oil prices

As the rest of the region grapples over a continuous increase in fuel crisis, Rwanda remains calm but government acknowledges the looming threat, and according to officials, discussions are going on to mitigate it. Reports indicate that motorists in Uganda and Kenya, for example, are braving fuel shortage largely attributed to the rising world crude oil prices. Emmanuel Hategeka, the Permanent Secretary in the Ministry of Trade and Industry (Minicom), told The New Times yesterday that ‘internal discussions’ about how to handle the threat are going on. “We also have similar problems because we are affected by global prices too, but we are still discussing this situation internally, and we will come out with a response soon,” Hategeka said. He, however, did not give any promises. “Our response shouldn’t be the same, it can be less or even more serious since we incur more transport costs being far from the coast.” Reports from Kenya indicate that crude oil prices rose Tuesday, raising fears over its impact on inflation and exchange rate instability as major world markets priced crude at $ 87 a barrel — the highest since October 2008. Apart from the increasing international prices, the fuel situation is attributed to other factors such as congestion at Mombasa port and transportation constraints on the oil pipeline system from Nairobi-Eldoret line and increase in demand for petrol in the region. Ends

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Gov’t concerned by increase in oil prices