VZCZCXYZ0000
PP RUEHWEB

DE RUEHLGB #0016 0090759
ZNR UUUUU ZZH
P 090759Z JAN 08
FM AMEMBASSY KIGALI
TO RUEHC/SECSTATE WASHDC PRIORITY 5027
INFO RUEHBS/AMEMBASSY BRUSSELS 0183
RUEHJB/AMEMBASSY BUJUMBURA 0223
RUEHDR/AMEMBASSY DAR ES SALAAM 1041
RUEHKM/AMEMBASSY KAMPALA 1800
RUEHKI/AMEMBASSY KINSHASA 0357
RUEHLO/AMEMBASSY LONDON 0157
RUEHNR/AMEMBASSY NAIROBI 1113
RUEHFR/AMEMBASSY PARIS 0401

UNCLAS KIGALI 000016 
 
SIPDIS 
 
SENSITIVE 
SIPDIS 
 
E.O. 12958: N/A 
TAGS: ECON PGOV PREL RW
SUBJECT: FUEL SHORTAGES POSSIBLE AS RESULT OF KENYA UNREST 
 
REF: KAMPALA 31 
 
¶1.  (SBU) Political unrest in Kenya has meant no fuel trucks 
arriving in Rwanda from Kenyan railway depots for the last 
week or more (as in Uganda - see reftel).  Rwanda has a fuel 
storage capacity of 29 million liters (gasoline and diesel); 
stocks now sit at 5 million liters of gasoline and 1.5 
million liters of diesel.  Daily usage of gasoline is 
normally 150,000 liters; the government has limited daily 
disbursements from depots to 80,000 liters  -- translating on 
paper into a roughly 60 day supply of gasoline.  However, 
Ministry of Commerce officials conservatively estimate 
national gasoline reserves at a 30-day supply.  Although, by 
government order, private vehicles are limited to 10 liters 
at a time at gas stations and taxis 20 liters, there is some 
black-market activity occurring and illegal storage of fuel 
at private residences.  Diesel reserves will apparently last 
longer -- far less vehicles take diesel compared to gasoline. 
 
¶2.  (SBU) Rwanda Revenue officials estimate that the halt in 
fuel tanker traffic from Kenya costs Rwanda about 25 percent 
of its total import revenue.  While sustainable in the short 
term, such a reduction will be more worrisome if it continues 
for weeks or months, say the officials.  So far there do not 
appear to be significant shortages of foodstuffs, although 
supplies of rice are dropping steadily. 
 
¶3.  (SBU) The Minister of Commerce and many fuel dealers have 
traveled to Tanzania to jointly negotiate alternate fuel 
supplies.  Supply of fuel to neighboring Congolese and Uganda 
towns have been halted.  The government so far is maintaining 
current prices  --  which it sets by administrative fiat, and 
which it increased by 11 percent toward the end of the year. 
 
¶4.  (SBU) Managers at the government fuel depots understand 
that fuel trucks bound for Rwanda are currently filling at 
the western Kenyan depot of Eldoret.  If able to reach and 
cross the Ugandan border (reftel reports 10 trucks bound for 
Rwanda did so today), they should reach Kigali and the main 
government depots in about two days, these managers estimate. 
 
¶5.  (SBU) Comment.  Rwanda appears to be managing its fuel 
situation competently, and if new supplies begin to arrive 
from Kenya in the next few days, the rationing will have been 
a successful response to the sudden stoppage of tanker trucks 
from Kenya.  However, Rwanda's vulnerability, sitting at the 
tail end of the supply chain from Kenya, is clear for all to 
see.  End comment. 
 
 
ARIETTI