Burundi raises gasoline prices again

RegionWeek Newsletter Vol VI, Issue #209 | Thursday, April 28, 2022

Dear Readers,

The Government of Burundi has just decided to raise gasoline prices again in less than 3 months. The price of gasoline at the pump goes from 2700 Fbu to 3250 Fbu per liter, (that is around $1,5 now) the price of fuel oil is from 2650 Fbu to 3450 Fbu while that of diesel goes from 2450 Fbu to 3150 Fbu.

In a communique by the Ministry in charge of energy on April  28 Minister Ibrahim Uwizeye calls on the population to discourage any maneuver aimed at disrupting the supply of fuel.

Pubic transport challenges

The rise in fuel prices occur after a severe shortage observed throughout the country for more than a month.  For several weeks public urban transport in the commercial city of Bujumbura was disrupted. Several city dwellers were forced to walk to reach their place of work or to return. Others had to pay for a taxi to take them home more than ten times the normal amount.

Early on Thursday one of Burundi’s leading Think Tanks PARCEM said that the fuel shortage is becoming more and more worrying, and called on the government of Burundi to consider investing in building up the strategic fuel stock and take it as a priority for the 2022-2023 budget year.

The President reacts

In an ecumenical prayer session organized every last Thursday of the month by the ruling party CNDDFDD throughout all the provinces of Burundi, President Ndayishimiye congratulated the Burundian people for their restraint and reassures them that more solutions will soon be communicated.

Last week, the Minister in charge of energy Abrahim Uwizeye while presenting the results of its quarterly achievements warned Journalists. “Don't ask me fuel-related questions I may fail to tell the truth. allow me to finalize the field assessment and I will organize a press briefing afterward”

What commentators think

According to analysts and commentators, Burundi has an estimated few months of currency reserves it can no longer easily import all the products it needs and is forced to make a choice and buy in small quantities, which explains this permanent state of shortage, soaring prices, and inflation.

The war in Ukraine is setting into motion the first global energy crisis of its kind, and nations around the world should respond by reducing their use of oil and gas, the leader of the International Energy Agency warned early in March.

Energy markets worldwide are dealing with massive disruptions to supply following Russia's invasion of Ukraine and subsequent sanctions slapped on Moscow by the United States and its allies.

The United Nations says since the start of the year, oil prices have gone up by more than 60%, and natural gas and fertilizer prices have more than doubled because of Russia's war on Ukraine. The U.N. says the war risks tipping up to 1.7 billion people, over one-fifth of humanity, into poverty, destitution, and hunger.

Thanks for reading!

Fabrice Iranzi, Editor in Chief | RegionWeek.com