Rwanda hikes retail prices for fuel as government ramps up subsidies to cushion consumers

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Fuel
Fuel

The Rwanda Utilities Regulatory Authority (RURA) on Sunday announced a decision to increase petroleum pump prices for diesel and super petrol by different price margins due to a global increase in crude oil prices.

“Following price changes on the international market of petroleum products, the maximum retail price for gasoline (premium motor spirit) is 1,359 Rwandan francs (about 1.33 U.S. dollars) per liter and diesel (automotive gas oil) is 1,368 Rwandan francs per liter,” said RURA in the statement.

Previously, a liter of gasoline cost 1,256 Rwandan francs while that of diesel was 1,201 Rwandan francs.

Since May 2021, the government of Rwanda has stabilized fuel pump prices through a strategy of foregoing some taxes levied on imports of petroleum products, said the statement.

Specifically for this period, the government has mitigated the price increase of 218 Rwandan francs per liter for gasoline and 282 Rwandan francs for diesel to allow for a lower increase of 103 Rwandan francs per liter and 167 Rwandan francs per liter for gasoline and diesel, respectively, it said.

The decision has been taken in order to avoid the negative consequences of higher fuel prices increases especially a generalized price increase (inflation) that would decelerate the speed of Rwanda’s post-COVID-19 economic recovery.

“The new pump fuel prices could see the cost of living increase given the heavy reliance on diesel and super petrol for transport, energy generation and cooking oil among other activities. The government should put much effort in mitigating the fuel hikes in order to maintain people’s cost of living,” Teddy Kaberuka, a Rwandan economist, told Xinhua in a telephone interview Sunday.

The new fuel prices take effect on April 4, according to RURA. Enditem

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