Page 12 - AfrOil Week 18 2020

AfrOil POLICY AfrOil
Rwandan fuel importers run out of storage
RWANDA
THE Rwanda Association of Petroleum Prod- ucts Importers (RWAPI) is reportedly pressing the government to help its members transfer excess fuel supplies to privately owned storage depots.
Joseph Akumuntu, RWAPI’s executive sec- retary, told e New Times last week that many Rwandan importers had found themselves with more fuel than they could sell, a er o cials in Kigali introduced restrictions designed to curb the spread of the coronavirus (COVID-19) out- break. e excess volumes are now stranded in parked trucks, the newspaper said.
“Importers ordered this fuel about two months before COVID-19 [hit],” Akumuntu explained. “By the time it got here, the lockdown had already been imposed. is means that the storage facilities are full because consumption levels have since dropped by 80%.”
e supply glut is a nancial burden, as well a logistical challenge, he stated. Rwandan fuel importers are contractually obligated to pay demurrage fees of $100 per day to the owners of the tanker trucks they use whenever they fail to meet deadlines for loading or unloading their cargoes on schedule, he said.
RWAPI hopes the government will help its members by o ering a tax concession, he said. Currently, he noted, importers have an incen- tive to transfer their fuel into the storage depots overseen by the Rwanda Revenue Author- ity in Gatsata, Jabana, Kabuye and Rusororo.
Companies that do so are able to delay payment of taxes on their fuel until they collect volumes for local distribution, while companies that rely on private storage facilities must pay all taxes due upon o oading, he said.
As such, he said, RWAPI wants the govern- ment to permit the usage of private facilities on the same terms. “Some of us have facilities where we can o oad this fuel, but we cannot a ord to pay the full tax right away,” he told e New Times. “We are hoping to discuss with the Ministry of Trade and come up with a solution that will cut [down] on the losses we are incur- ring right now.”
Trade Minister Soraya Hakuziyaremye indicated that Kigali was considering RWA- PI’s proposal but stressed that no solution had been adopted yet. “It’s true that they have con- tacted us. We are dealing with people who have nowhere to o oad this fuel and [are] consider- ing giving them tax concessions so that they can take this fuel to their petrol stations, and then we can revisit this when activities actively reopen,” she said.
Rwanda typically consumes about 20mn litres per month of gasoline and the same amount of diesel. Gasoline consumption dropped to an estimated 5mn litres in April, though, while diesel consumption sank to 7mn litres. e New Times estimated the volume of excess motor fuel still waiting to be unloaded from tanker trucks at 6.6mn litres. ™
PROJECTS & COMPANIES
Zimbabwe, Invictus hope to sign PSA on Cabora Bassa project soon
ZIMBABWE
ZIMBABWE’S government has said it expects to conclude negotiations with Australia’s Invic- tus Energy on a production-sharing agreement (PSA) for the Cabora Bassa project in the near future.
Mines and Mining Development Minister Winston Chitando told the state-run ZBC-TV channel earlier this week that the parties were still in discussions but were close to striking a deal. e process is “now quite advanced in terms of negotiations,” he remarked.
Chitando did not say when the talks might come to a successful conclusion, but he did note that Invictus was prepared to move for- ward quickly. “Once the production-sharing
agreement is concluded and signed, on the basis of that [signing], Invictus will now be able to then [invest] money,” he said.
e minister was speaking shortly a er the Australian company’s managing director, Scott Macmillan, expressed optimism about Invictus’ plans for Zimbabwe.
“ e company has made signi cant progress during the quarter, and I am particularly pleased
with the engagement from the government to deliver the regulatory framework required to implement a production-sharing agreement
with the Republic of Zimbabwe,” Macmillan
was quoted as saying in a press release dated
April 30. 
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w w w . N E W S B A S E . c o m Week 18 06•May•2020