Hike in global oil prices will not affect local fuel prices - MINICOM

Despite recent increments of oil prices on the international market, the changes will not affect fuel prices, the Ministry of Trade and Commerce (MINICOM) has said. Oil prices on international market hit a four- week high above $78 a barrel (approximately Rwf44,694) on Monday up from Rwf40,110 two weeks ago. However according to Antoine Ruvebana, the Permanent Secretary at MINICOM, the price changes registered this month were insignificant and will not affect business, given that the country has enough oil reserves to meet the demands of the local market. “Unlike last year, we have enough oil reserved that can serve the country without any importation,” said Ruvebana, without divulging further details on the amount of oil reserved. The official also observed that earlier this month, a barrel of crude oil which was initially costing Rwf44, 694 fell to Rwf38, 964 mid month. However on Christmas, it had risen again to Rwf44, 694 and currently is selling at Rwf42, 402. “There will be no price changes in the country and we are looking forward to hearing from domestic petroleum dealers during our monthly negotiations with them,” explained Ruvebana. Reports indicate that oil is back in a range that producer group OPEC has repeatedly said it finds comfortable, after dipping briefly below $70 in the middle of the month. Oil has risen some 13 percent from a two-and-a-half month low below $70 a barrel two weeks ago on hopes for rising demand, with recent US government data showing large consecutive declines in US crude and distillate inventories. Rwanda’s fuel consumption capacity is 400,000 litres per day with 250,000 litres of diesel consumed and 150,000 litres of petrol per day respectively. According to the top OPEC oil exporters, oil prices are stabilizing and could rise reasonably between $75 and $80 per barrel. Ends

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Hike in global oil prices will not affect local fuel prices - MINICOM