Shoppers to wait longer for low commodity prices

Rwandans who have been expecting to buy food and other commodities at pocket-friendly prices following the reduction in fuel prices over past three months will have to wait a bit longer. The government has cut fuel prices three times over the past three months, with recent reduction being on Monday this week. Global oil prices have been dropping since June last year, and are at about $55 per barrel, from over $100 almost a year ago. In Rwanda, both petrol and diesel cost Rwf845 per litre, up from Rwf895 in December, and Rwf960 in November. A mini-survey by The New Times around markets in the City of Kigali discovered that commodity prices were largely unchanged, and the drop in fuel prices has not led to a corresponding decline in rates of essential commodities. Irish potatoes go for Rwf200 per kilogramme, up from Rwf150 in December in Kigali City Market, Kimisagara and Kimironko markets, while that of the Kinigi variety (of Irish potatoes) is at Rwf200 compared to Rwf250 in December. James Karake, an Irish potato trader in Nyabugogo, attributed the decline in Kinigi variety to the fact that it is the harvest season in Uganda, but not because of low fuel prices. Prices of imported fruits increased over the period, while those of locally-produced fruits are stable. Mangoes from Burundi are currently at Rwf2,000 per kilo, an increase from Rwf1,000 three months ago. Local mangoes, on the other hand, go for Rwf1,000 per kilo. Other commodities like rice, meat, fish are unchanged, with a kilogramme of rice at Rwf800, while that of beef costs Rwf2,500, and fresh fish is at Rwf3,000 per kilo. Fresh beans are at between Rwf500 and Rwf700 a kilo, sweet potatoes go for Rwf200, while fresh peas are at Rwf1,500 per kilogramme. A litre of milk is at between Rwf350 and Rwf400 in most city suburbs. Cassava flour prices have remained stable over the reporting time, with unprocessed flour at Rwf250, while Kinazi and Akanoze brands cost Rwf500 per kilo. Bread (kilo) ranges from Rwf1,000 to Rwf1,500, depending on brand, or whether one buys from a supermarket or neighbourhood shop. A bar of soap is at Rwf400 for wholesale, and Rwf500 retail. City shoppers who talked to The New Times said they had expected commodity prices to reduce after government cut oil prices. Experts say a reduction in fuel prices does not necessarily mean retailers will cut commodity prices, explaining that there are other factors that come into play like taxes, and availability of given goods.

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Shoppers to wait longer for low commodity prices