ENERGY: Kerosene prices fall by 14.5 percent

As kerosene is zero subsidised with taxes as low as 5 percent, the product is used for lighting lamps and at times it complements the usage of wood and charcoal for cooking Prices of kerosene have dropped from Rwf788 to Rwf674, representing a 14.5 percent decrease, according to a mini-survey carried out by The New Times in Kigali City over the weekend. Filling station managers attribute the decrease to the depreciating fuel prices on the international market. Reports indicate that oil prices are continuing to fall. Despite a-day cut in production from oil producers’ and cartel, OPEC, US light crude oil fell to $60 a barrel recently, the lowest level in 14 months. The drop by Rwf114 comes two weeks after the price of diesel and petrol also fell by 13.6 percent. The same price change was also attributed to the steadily decrease 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. It was predicted by the Ministry of Commerce that the decline in the price of petrol and diesel would consequently drag kerosene prices down countrywide. Monique Nsanzabaganwa, Minister of Commerce while announcing new fuel prices explained that the decrease in all fuel prices would affects prices of all petroleum products. The Director of Petroleum in the Ministry of Commerce, Alex Rutabingwa said that the government does not fix kerosene prices due to its low demand compared to other petroleum products. “Demand and supply dictates the price. Government only intervenes to avoid exploitation of locals,” he explained. Adding, “Government only recommends prices for petrol and diesel that are mainly used for running industries and generators for electricity.” Rutabingwa explained that petrol and diesel prices affect the general economy. This also justifies the reason why government subsidises these two products. Petrol and diesel are subsidised by 50 percent and 77 percent respectively. As kerosene is zero subsidised with taxes as low taxes as 5 percent, the product is used for lighting lamps and at times it complements the usage of wood and charcoal for cooking. Ends

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ENERGY: Kerosene prices fall by 14.5 percent