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Rwanda: Fuel Crisis Imminent Violence in Kenya Continues - Official
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Rwanda News Agency/Agence Rwandaise d'Information (Kigali)
2 January 2008
Posted to the web 2 January 2008
Kigali
Rwanda has not experienced any shortages of petroleum products but should the violence in Kenya continue unabated - the effects will spill over, senior private sector official said on Wednesday.
According to Mr. Emmanuel Hategeka - Executive Secretary of the Rwanda Private Sector Federation, Rwanda has sufficient fuel reserves at the moment that may run out anytime soon because there are no imports coming in, the state broadcaster reported.
Reports from Uganda suggest that fuel shortage, especially of petrol, has disrupted the transport sector and has pushed transport fares up. The shortages were caused by the post-election violence in Kenya, which followed the weekend announcement of Mwai Kibaki as the winner. The riots have blocked the Kenya-Uganda cross-border trade.
"As I talk now, the Kenya energy officials are meeting to lay strategies of escorting fuel tankers to the border. This will ensure constant fuel flow into the country," the New Vision in Uganda quotes Mr. Fred Kaliisa - an Energy Ministry Permanent Secretary to have said.
"We are looking at using Dar-es-Salaam as an alternative but the problem is the delays associated with the route."
Rwanda, Burundi and Eastern DR Congo are totally dependant on fuel import through Uganda from the western Kenya towns of Eldoret and Kisumu - that have witnessed the brunt of the violence.
However, fuel shortage in Rwanda and the East Africa region in general started in November as a result of high demand that meant the refineries in Kenya could not hand. The problem has also been compounded by the shaky value of the dollar.
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In Rwanda, travel charges shot up by up to 40% - meaning Kigali residents have to pay Rwf 150 (about $30 cents) from Rwf 100.
There are also plans to build a pipeline from the Kenyan capital Nairobi to Kigali to be operational in 3 years - and later to Bujumbura in Burundi. Government here is also looking at moving its import route Dar-es-Salaam in Tanzania
The Kampala-Kigali portion is estimated to cost 193.6 million dollars (about Rwf 106 Billion) and another $53 million is required to move the much needed pipeline to Burundi.
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