KIGALI, March 4 (Xinhua) -- Rwanda is ramping up contingency measures to minimize the potential negative impact of U.S. strikes on Iran, which have disrupted global oil flows, on the economy and people's welfare, a senior government official said.
Rwandan Minister of Finance and Economic Planning Yusuf Murangwa told Radio Rwanda on Tuesday that progress has been made in talks with banks to extend financing to fuel dealers to ensure that the country maintains adequate stocks.
Speaking about the potential economic impact of the ongoing war in the Middle East, Murangwa highlighted the risk of rising fuel and commodity prices due to global supply chain disruptions.
"We are obliged to support fuel dealers to have enough stock," he said, adding that if the war lasts more than a month, the government will support businesses to offset the impact of the conflict.
"We have met them (traders) and held talks with banks to enable them to import enough stock," he said.
The minister reassured the Rwandan public that the country's fuel reserves remain stable, as the government closely monitors the situation.
Economic analysts have warned of a prolonged disruption of the Strait of Hormuz, a major Middle East shipping route, particularly for tankers carrying oil worldwide.
Murangwa said that Rwanda could withstand the impact of oil supply disruptions for up to one month in the event of major disruption resulting from the fighting.
Recent market analysis indicated that fuel prices have surged by 10 percent, with corresponding increases in the prices of other products ranging between 10 percent and 20 percent, according to the minister.
Murangwa also spoke about the worst-case scenario in which the conflict lasts more than a month.
In such an event, he said, the government would work with business people to look for alternative markets from which to sell or procure fuel and other supplies to avoid significant domestic consequences.
He noted that a lesson from the current war is that the government must continue exploring alternative markets from which to procure products needed on a daily basis or industrial raw materials. ■
