Kerosene prices fall by 3.3 percent

The prices of kerosene have dropped from Frw815 to Frw788— representing a 3.3 percent decrease. According to a mini survey carried out by The New Times in Kigali town, Kerosene pump prices have dropped at filling stations.Vincent Karega, the State Minister for Industry and Investment Promotion attributed the decline to the decreasing fuel prices on the international market. “The decrease in all fuel prices always affects prices of all petroleum products,” Karega said. On the international market, reports indicate oil prices are continuing recent falls, dragged down by the expectation that turmoil in the global financial sector will lead to a wider economic slump. With demand already falling, US light crude ended down 5.2 percent or $4.09 cents to $74.54 a barrel on Wednesday, its lowest level for 13 months. The drop by Frw27 comes two weeks after the price of diesel and petrol also fell by 4.8 percent, also attributed to the steadily decreasing of fuel prices on the international market. Local fuel dealers and government therefore reached a consensus of reducing petrol and diesel prices without compromising business. Karega however said that unlike prices of other petroleum products such as petrol and diesel, the kerosene prices are not much affected by international price fluctuations. “This is because its (kerosene) demand is not high compared to other petroleum products.” He explained that it is the reason why government subsidized petrol and diesel to avoid their prices from shooting high, to about Frw1223 on petrol and 1204 on diesel, thereby forcing prices of essential commodities to go high and thus affecting the entire economy. Subsidies since April have been 100 percent on diesel and 77 percent on petrol, while kerosene has no subsidies as its tax (import duty) is already low (5 percent). Kerosene is used by Rwandan peasants for lighting and at times, complementing firewood in cooking. Ends

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Kerosene prices fall by 3.3 percent